Regulatory Alerts2024-09-06
Guidance Notice External Bail-in Execution
The Federal Financial Supervisory Authority (BaFin) issued this July 2024 guidance to standardize the operational execution of external bail-in tools for German banks under the SRMR and SAG. The notice details a comprehensive workflow covering resolution order publication, trading and payment suspensions, technical conversion scenarios for various financial instruments, and the precise booking of written-down liabilities into participants' accounts. By defining standardized task tables, positive lists for exclusions and suspensions, and specific procedures for ICSDs and domestic stakeholders, the framework ensures consistent capital restoration and market continuity during bank resolution proceedings.
Share