The European Banking Authority (EBA) today published its final Guidelines on transferability to support the resolvability assessment for transfer strategies. In particular, the guidelines on transferability provide guidance relating to (i) the definition of the transfer perimeter and (ii) the steps to operationalise the implementation of the transfer. The transferability Guidelines complement the resolvability Guidelines, which were published on 13 January 2022. Institutions and resolution authorities should comply with these Guidelines in full by 1 January 2024.
Transferability is defined as the elements of resolvability that will facilitate the transfer of an entity, a business line or a portfolio of assets, rights and/or liabilities (“transfer perimeter”) to an acquirer, a bridge institution, or an asset management company. The Guidelines deal with the transfer perimeter definition, separability (i.e. how to facilitate separation of an entity or a business from the rest of the group in resolution) and operational transfer of this perimeter.
The transferability Guidelines aim at supporting the assessment of the feasibility and credibility of transfer strategies and include requirements relating to the implementation of transfer tools. The transferability Guidelines include proportionality measures, as they do not apply to institutions subject to simplified obligations or earmarked for liquidation, unless resolution authorities decide so (in full or in part). In addition, discretion is left to authorities with regards to the extent of application of the Guidelines in cases where the transfer tool is only part of the variant strategy.
Legal basis and next steps
These own initiative Guidelines are based on Article 16 of Regulation (EU) 1093/2010, which mandates the Authority to issue guidelines and recommendations addressed to competent authorities or financial institutions with a view to establishing consistent, efficient and effective supervisory practices within the European System of Financial Supervision, and to ensuring the common, uniform and consistent application of Union law.
The resolvability and transferability Guidelines will be updated and complemented as progress is achieved on relevant policy topics, both at international and EU level. In particular, the EBA is currently consulting on publication of the bail-in mechanics by resolution authorities and working on the topics of resolvability testing and transparency.
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