Question
Is the national resolution authority empowered to draft an individual resolution plan, referred to in Article 10 BRRD, for an institution which is part of a (third country) group subject to consolidated supervision, where the European group-level resolution authority (GLRA) has not established the European resolution college?
Background on the question
In line with Article 12 BRRD subsidiaries that are part of the group should be covered by group resolution plan adopted in the form of joint decision. To avoid overlaps the regulator included in Article 10 restriction that obligation for NRAs to draw up individual resolution plans does not refer to the abovementioned subsidiaries. Simultaneously BRRD in Articles 88 and 89 stipulates that group resolution plans are subject to joint decision which is taken within resolution college or – in case of banking groups where the ultimate parent undertaking is registered in a third country – European resolution college. In some cases process of establishing European resolution colleges is delayed and consequently for some institutions there have been drafted no resolution plans so far. As one of the elements of resolution planning process is determination of MREL lack of adopted resolution plan not only puts into question possibility of carrying out resolution process in efficient way but also breaches level playing field principle.
Answer
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in theAdditional background and guidance for asking questions. We hope for your understanding.For further information please refer to thepress releaseand the updatedQ&A page.