The Single Resolution Board (SRB) is moving into the final phase of the right to be heard process regarding its preliminary decision whether to compensate the shareholders and creditors affected by the resolution actions concerning Banco Popular Español S.A..
The Single Resolution Board’s procedure to assess applications to reduce eligible liabilities instruments under Article 78a of the Capital Requirements Regulation will remain in place until the relevant European Banking Authority’s Regulatory Technical Standards come into force. To continue performing market-making and other secondary market activities as of 1 January 2020, banks must obtain a prior permission.
The EBRD is supporting the financial sector and micro, small and medium-sized enterprises (MSMEs) in Jordan with a JOD 21.3 million subordinated loan to Bank al Etihad that will support its growth and lending capacity. This is the first time that the EBRD has provided a Basel III-compliant subordinated loan in Jordan or the wider southern and eastern Mediterranean region. The loan is aimed at strengthening Bank al Etihad’s capital structure in line with the Basel III instructions that Jordan adopted in 2016.
This paper examines how the ECB should respond to the currently low profitability of significant banks in the Banking Union. The subdued profitability appears to be a structural problem caused by overbanking, with too many bank assets chasing too few profitable banking sector opportunities. To address the root problem of overbanking, the ECB should use its existing supervisory powers to require significant banks with unsustainably low profitability to restructure reducing their overall size. This document was provided by the Economic Governance Support Unit at the request of the ECON Committee.
Senior officials from EU and national resolution, regulatory and supervisory authorities will hold a planned coordination exercise on 9 & 10 December 2019, as part of ongoing efforts to strengthen crisis preparedness.