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The EBA's RTS on notification specify the process, as well as the information required, for EU competent authorities to notify when a banking institution under their supervision is failing or likely to fail. A consistent, transparent and reliable pan-EU framework, made of common standards for all Member States, is essential for EU competent authorities to make prompt and effective decisions, as well as for all parts affected by the resolution action to understand resolution procedures.
The work of the EBA is based on the prescriptions in the BRRD which define the scenarios for determining that a banking institution operating in the EU is failing or likely to fail. The responsibility to identify failing institutions primarily lies with the management body of the institution itself. This information must then be notified to the Competent Authority at national level, which in turn also alerts the concerned Resolution Authority. The BRRD also envisages that either the Competent or Resolution authority can independently initiate an assessment of failing or likely to fail.
The RTSs issued today define the process and content of a notification and summarise the effects of resolution actions, in particular with attention to the effects and implications it will have for retail customers.
Final Draft RTS on Notifications