Bank of England – Second assessment under RAF
The Bank of England last week published its second assessment under the Resolvability Assessment Framework (RAF). The assessment tests banks’ Resolution processes: their preparedness to “fail” in a managed and structured way.
In addition to commenting on the specific preparedness of the eight major UK banks, the assessment contains useful focus areas for all banks’ Resolution Packs, including…
🔹 senior manager access to data, documentation, and MI to support resolution decision making in a stressed environment
🔹 the timely availability of valuation data
🔹 general preparedness to plan and execute multiple bespoke restructuring plans during a resolution event (a focus for the next assessment)
🔹 keeping resolution plans “live” via assurance
A consistent theme across the assessment, and one to keep in mind for wider compliance, is evidencing/demonstrating that plans will work in practice, up to and including simulation testing.
