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These RTS have been developed within the framework established by the EU Bank Recovery and Resolution Directive (the BRRD) and specify how resolution colleges should function, from their establishment, going concern function and resolution planning, to situations of cross-border resolution.
The EBA's standards focus on the operational organisation of resolution colleges and describe the resolution planning process - from the assessment of the resolvability of an institution to the setting up of minimum requirements for own funds and eligible liabilities (MREL) -, and give detail on how the resolution of a cross-border group should be carried out.
Resolution colleges are the bodies that ensure cooperation of all parties at all stages of the resolution planning and resolution process of a failing bank. These RTS also cover situations of disagreement, so as to ensure that transparency is given to decisions taken on individual basis and cooperation and interaction between resolution authorities continues also in such cases. The involvement of resolution authorities of third countries, both in resolution planning and in group resolution, is also foreseen by these RTS, which require EU resolution authorities to develop and specify a framework covering this third country resolution authorities' involvement.
The recent financial crises have shown that cross-border cooperation and coordination are vital for effective resolution of failing institutions within the EU banking sector. These RTS have taken into account the EBA's experience in the organisation and running of EU supervisory colleges in the banking sector, as well as the lessons learned on home-host cooperation (the countries where an institution is authorised and the countries where it operates through subsidiaries or branches) during situations of both going concern and emergency.
Final draft RTS on Resolution Colleges