Coordinating banking and insurance resolution activities in the context of financial conglomerates

This note presents the French framework applicable to the resolution of financial conglomerates and the coordination arrangements implemented between banking and insurance resolution authorities, based on existing provisions under French and European law. It sets out the methodology adopted for resolution planning, based on a coordinated sectoral approach. This approach combines a sector-specific analysis, considering financial and operational interconnections that may affect the feasibility and credibility of the proposed resolution strategies.

Particular attention is paid to the mechanisms for the transmission of shocks between sectors, notably those resulting from the equity method of accounting applied to insurance holdings the accounts of banking groups, as well as to the prudential treatment of these holdings, which may have an impact on prudential ratios and the resolvability of groups.

The analysis also details the main failure scenarios likely to affect a financial conglomerate - such as the failure of the bank alone, of the insurer alone, or simultaneous failure - and the respective implications in terms of coordination between authorities.

This publication is a continuation of the ACPR’s work on insurance resolution and cross-sectoral coordination. It aims to explain the French approach to the resolution of financial conglomerates, enhance transparency for stakeholders, and contribute to the preparation of the operational framework ahead of the transposition of the IRRD, expected by early 2027.