BaFin consults on MaBail-in extension

2020/11/17

The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin) launched a consultation on a draft for an extension of the circular on minimum requirements for the feasibility of a bail-in (MaBail-in). The circular contains requirements for management information systems to provide at all times the information essential for implementation of the resolution instruments of equity participation of holders of relevant capital instruments and creditor participation pursuant to §§ 89 and 90 of the German Act on the Recovery and Resolution of Credit Institutions (Gesetz zur Sanierung und Abwicklung von Kreditinstituten – SAG) (Art. 21 and 27 of the Single Resolution Mechanism Regulation (SRMR)). It also includes requirements on technical and organisational resources that enable the information to be provided within 24 hours of a request by the resolution authority. The main additions relate to additional data points for the further development of the external bail-in implementation, the extension to all bail-in eligible liabilities (in compliance with the proportionality principle), and the inclusion of a catalogue of frequently asked questions.