The circular on structural resolution tools is new and entails requirements for the operationalisation of resolution tools for which a transfer is envisaged. The circulars on resolvability and bail-in are extensions of previous versions.

The requirements provided for in the circulars apply to institutions and group entities under BaFin’s remit as resolution authority. The requirements do not apply to institutions and group entities for which the resolution plan foresees a liquidation under normal insolvency proceedings.

MaResolvablity

The circular was amended by the addition of a comprehensive introduction. Its objective is to strengthen the public’s as well as relevant insitutions’ understanding of the resolution planning process for less significant institutions. In particular, the new introduction demonstrates how the circulars that contain more detailed requirements are linked. In the main body of the document, BaFin included and updated references to those circulars. The new version replaces circular 08/2022.

MaBail-in

The fourth version of the circular MaBail-in (minimum requirements for the implementation of a bail-in) contains new requirements regarding the preparation of a bail-in playbook. It further expands the existing data set through the addition of new data points which serve the external bail-in execution of structured notes. BaFin also revised data point definitions and extended the annex on „frequently asked questions“. The new version replaces circular 14/2021.

MaStructural Resolution Tools

The new circular MaStructural Resolution Tools deals with resolution tools that foresee a sale of business (asset and share deal), a transfer to a bridge institution (asset and share deal), or a transfer to an asset management vehicle.

The circular outlines the various types of transfers. The requirements differ depending on the resolution tool as well as the type of transfer (asset or share deal). It also provides a stylised example of an index of a transfer playbook for each type of resolution tool. Such playbooks need to be prepared by the relevant institutions in the course of resolution planning.

A public consultation of the three circulars was launched between 20 October and 1 December 2023.