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The Report found that in 2017, resolution authorities were broadly compliant with the regulations regarding the operational aspects of colleges. In particular, their level of engagement has progressively intensified and they have managed to meet most of the deadlines for reaching joint decisions. Nevertheless, there remain scope for improvement. The EBA stresses that colleges meetings are required to take place at least once a year, that resolution planning information should be properly circulated ahead of the meetings and that minutes should be promptly shared with members after the meetings.
The quality of the observed discussions has improved over the last two years with noticeably greater contribution from host authorities. However, the Report identifies that the quality varied between meetings and that additional progress is needed in some important areas, such as the interlinkages between recovery and resolution.
Also, the quality of college outputs has improved. In 2017, the college members discussed and reached joint decisions on resolution plans and resolvability assessments as well as on consolidated MREL for most of the colleges monitored. In addition, the EBA observed progress on the removal of impediments, with banks building up their levels of MREL-eligible debt as well as making progress in the inclusion of robust resolution clauses in their contracts for critical services.
Nonetheless, more remains to be done to ensure college members are prepared for highly stressed situations. In particular, the Report identifies that: