Enhancing the Credibility of Resolution

Schlagworte

Abwicklungsrecht Bankenaufsichtsrecht Bankinsolvenzrecht Bankrecht ökonomische Analyse des Rechts Restrukturierungsplanung Single Resolution Mechanism Mindestkapitalanforderungen Abwicklungsplanung Bail-In BRRD

• Kapitel Ausklappen | EinklappenSeiten
• 1–16 Titelei/Inhaltsverzeichnis 1–16 Details
• 17–20 List of Abbreviations 17–20 Details
• 21–34 PART 1 – INTRODUCTION 21–34 Details
  • Introductory Remarks
  • Scope and Objective of the Thesis
  • Course of the Thesis
• 35–124 PART 2 – CREDIBILITY OF RESOLUTION PROCEDURES AND CURRENT LACKS 35–124 Details
  • The Importance of Credible Resolution Procedures
    • Why the Credibility of Resolution is So Important
    • The Current Lack of Credibility in the Resolution Framework
      • Complexity in Bank Structures
      • Asset Size
      • Legal and Organizational Structures
      • Number of Legal Entities and Distribution of Banking Groups and Activities Across Jurisdictions
      • Governance Arrangements
        • Discrepancies in Institutions' Technical Infrastructure
          • Institutional Structure: Business Models
          • Results
        • No Adequate Modification Measures Ex Ante
        • Results of Ex Ante Evaluation
      • Ex Post: Lack of Sufficient Funding for Resolution
        • A Junction Before Resolution: Precautionary Recapitalization
          • The Current Framework of Precautionary Recapitalization
          • Application of Precautionary Recapitalization in Italy – Unveiling the Problems
          • Precautionary Recapitalization – Quo Vadis?
        • The Available Funding Sources and the BRRD’s Burden-Sharing Cascade
          • The Good: Private Funding
            • National Insolvency Proceedings
            • Internal Private Funding Instruments – Bail-In
              • Reducing the Pool of Bail-inable Instruments through Articles 44(2) and 44(3) BRRD
              • Exemption of Senior Debt Holders
              • Bail-inable Instruments in the Cross-Border Context
              • Conclusion
            • External Private Funding Instruments
          • The Ugly: Sector Funding
            • Pre-Funded Funds – DGS and EDIS as Sector-Funded Financing
          • The Bad: Public Funding
            • European Stability Mechanism – Direct Recapitalization Instrument
        • Results of Ex Post Evaluation
      • Excursus: Limits to the No-Bailout Policy – The Role of Public Financing
      • Quod Erat Demonstrandum: Emergency Liquidity Assistance
        • Emergency Liquidity Assistance for Solvent Institutions – An Overview
        • The Current Problem
      • Results
    • When is Resolution Credible?
      • Credibility Ex Ante: Recovery and Resolution Planning
      • Credibility Ex Post: Loss-Absorbing Capital Requirements
  • Result of Part 2
• 125–177 PART 3 – RECOVERY AND RESOLUTION PLANNING – IMPACTS ON CREDIBILITY 125–177 Details
  • The Impact of Recovery and Resolution Planning on the Credibility of Bail-In
    • The Potential of RRP to Enhance Credibility Ex Ante Resolution Decision
      • Remedy for the Lack of Predictability
      • Remedy for Complexity
      • Remedy for Missing Modification Measures
    • Identification of Possible Impediments to the Potential of Recovery and Resolution Planning
      • Impediments Concerning Recovery and Resolution Planning
        • Potential Divergences Between Authorities – Cross-Border Coordination
        • Protection of Own Markets, Market Players and Depositors
        • Planning as an Inconvenient Standard Exercise – Adding More Complexity
        • Drawing-up of Plans Takes Place in Times of Stability – Optimism Bias
        • Costliness of Recovery and Resolution Plans
        • Predictability of the Actual Crisis Scenario at Some Future Date
        • Impermanence of Banks’ Structures and the Topicality of Recovery and Resolution Plans
        • Opaque Data Production and Collection Process – Templates
          • Recovery Planning Process – Building Blocks
          • Resolution Planning Process – Building Blocks
          • Evidence from Institutions Undertaking Planning
          • Templates
        • Planning Capacity for Systemic Crises
        • Gateway to Political Influence – Enforceability of Plans
      • Impediments Concerning Resolution Plans
        • Principal-Agent Conflict
        • Issues with Resolution Plans Relying on Institution-Provided Information
          • Unintentionally Incorrect Information
          • Faulty Processing or Valuation of Information
          • Intentionally Incorrect Information
          • Outlook: Determination of MREL Quote
          • Conclusion
      • The Problems with Modification Measures
  • Result of Part 3
• 178–233 PART 4 – LOSS-ABSORBING CAPITAL REQUIREMENTS – IMPACTS ON CREDIBILITY 178–233 Details
  • The Impact of Loss-Absorbing Capital Requirements on the Credibility of Bail-In
    • Convergence of MREL and TLAC – the European Proposal
      • Minimum Requirements for Own Funds and Eligible Liabilities
      • Total Loss-Absorbing Capacity
      • Integrated Approach – Commission Proposal
    • The Potential of LACRs to Enhance Credibility Ex Post Resolution Decision
    • Identification of Possible Impediments to the Potential of Loss-Absorbing Capital Requirements
      • Implementation, Monitoring, and Maintenance Costs
      • Implementation of Integrated LACRs is Complex and Difficult to Understand
      • Eligibility of Instruments – Qualitative Requirements
      • Pricing of LAC Instruments
      • Debt Subordination – New Article 108 BRRD
      • Potential Investors and Holders of MREL-Eligible Instruments
        • Possible Investors
          • Retail Investors – Households – SMEs
          • Banks and Other Financial Institutions
          • Deduction of Cross-Holdings
        • Risk Transportation from the Banks to the Market – Who Remains?
        • Imposition of Losses on Specific Classes of Creditors Could Give Rise to Adverse Systemic Effects
      • Problem of Certain Banks in Complying with Loss-Absorbing Requirements
      • Scope and Level of Application
      • MREL Guidance – New Article 45e BRRD
      • Calculation Process
        • Denomination – Underlying Uncertainty
        • The Impact of Recovery and Resolution Planning – First Level of Uncertainty
        • Discretion in Setting the Recapitalization Amount – Second Level of Uncertainty
        • Unclear Adjustment Mechanisms – Third Level of Uncertainty
      • The TLAC as an International Standard Being Transposed into National Law
      • Current Shortfall and Transposition
  • Result of Part 4
• 234–274 PART 5 – ATTEMPTS TO FIND SOLUTIONS TO THE IDENTIFIED IMPEDIMENTS 234–274 Details
  • Possible Solutions to the Identified Impediments of Recovery and Resolution Planning
    • Is Improvement of Recovery and Resolution Planning Necessary at All?
    • Proposals in Detail: Measures to Improve Recovery and Resolution Planning
      • Strengthening and Clarifying the Framework for Cross-Border Cooperation of Supervisory and Resolution Authorities
      • Enhancing Data Management
        • Special Training to Enhance Internal Data Provision
        • Full-Time RRP Employees
        • Development of a Standardized Template for a Single Distributor that Shares Relevant Data with Recipient – Information Intermediary
        • Updating of Institutions' IT Infrastructure
        • Automated Data Submission
        • RegTech as an Antidote to Major Data Management Problems
      • Make Plans Enforceable – Penalize Non-Compliance – Prevent Political Influence
      • Structural Reform of the Banking Sector
      • Open Issues
  • Possible Solutions to the Identified Impediments of Loss-Absorbing Capital Requirements
    • Proposals in Detail: Measures to Improve Loss-Absorbing Capital Requirements
      • Adoption and Maturation of the Reforms
      • Defining Dependable Eligibility Criteria
      • Enhancing the Pricing of MREL Instruments
      • Solution to the Subordination Problem
      • Solving the Investor Problem – Adequacy of Holders of Loss-Absorbing Debt
        • Disclosure Requirements and Provision of Mandatory Information to Potential Investors
        • Find Resilient and Adequate Holders for Loss-Absorbing Instruments – Buy-Side Monitoring
        • Setting-up Specific Bail-in Bonds
        • What to do with Legacy Holdings – Resolution Planning?
      • Flexibility Needs of Different Business Models
      • O/DSIBs – Scope and Level of Application
      • MREL Guidance
      • Solutions to Calculation Problems
        • Making the Calculation Process More Predictable
        • Making the Calculation Process More Accurate
      • International Transposition of TLAC
      • Shortfall and Transposition
  • Result to Part 5
• 275–278 PART 6 – SUMMARY OF THESES 275–278 Details
• 279–302 References 279–302 Details