On October 31, 2016, the EBA published a report
("EBA-OP-2016-18") on the appropriate
point for the target level for resolution financing arrangements.
The EBA produced the report under Article 102(4) of the
Bank Recovery and Resolution Directive
In the report, dated October 28, 2016, the EBA recommends
changing the basis from covered deposits to a total liabilities
based measure and, in particular, "total liabilities excluding
own funds less covered deposits." Following a qualitative and
quantitative assessment of various criteria, the EBA believes that
this is the most appropriate target level basis for resolution
financing arrangements. It considers this basis to be simple and
transparent, and also consistent with the regulatory framework and
calculation methodology for individual contributions.
A further recommendation in the report is that if the European
Commission issues a legislative proposal on amending the target
level basis for national resolution financing arrangements, it
should also consider adjusting:
The percentage of the target
The target level basis for the
single resolution fund
The European Commission will consider the EBA's
recommendations, and decide whether to submit a legislative
proposal to amend the target level basis for resolution financing
arrangements, by December 31, 2016.
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