IAS19 Defined Benefit Pension + Mortgage Portfolio Analysis
Corporate Structure
Holding company
Bank of Ireland Group plc (BOIG)
Bank of
Ireland
100%
AT1
Tier 2
Senior unsecured
The Governor and Company of the Bank of Ireland (GovCo)
→ Senior unsecured
Bank of Ireland
Capital / MREL
Operating subsidiaries
•
100%
↓
New Ireland Assurance
Company plc
LANG
Bank of
Ireland
100%
Bank of Ireland Mortgage Bank Unlimited
Company (BOIMB)
Bank of
Ireland
↳ Irish Covered Bonds (ACS)
100%
K
Bank of Ireland (UK) plc
Bank of
Ireland
UK
RMBS
Preferred resolution strategy for the Group consists of a Single Point of Entry (SPE) bail-in strategy through the Group holding company (BOIG)
Transparent and well-defined resolution strategy in comparison to other jurisdictions
In 2017 BOIG introduced on top of the existing group structure supporting an SPE preferred resolution strategy
No change to any of the Group's existing operating companies
Bail-in at BOIG is the primary resolution tool. MREL requirements are expected to be met through junior and senior issuance from BOIG
Funding
Losses are passed to BOIG by the write-down of intragroup assets. BOIG investors bear loss in accordance with the resolution² hierarchy. Resolution authorities required to apply
the "No creditor worse off" principle in application of the bail-in tool
Funding requirements may also continue to be met, as required, through the issue of Irish Covered Bonds (ACS) by Bank of Ireland Mortgage Bank Unlimited Company,
Residential Mortgage Backed Securities (RMBS) by Bank of Ireland (UK) plc and senior unsecured issuance by GovCo
1 100% shareholding via intermediate holding company
2 Per Regulations 87 and 96 of the European Union (Bank Recovery and Resolution) Regulations 2015, as amended
54View entire presentation