Bank Recovery and Resolution Directive (BRRD)—essentials
Bank Recovery and Resolution Directive (BRRD)—essentials

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Bank Recovery and Resolution Directive (BRRD)—essentials
  • Background to the EU BRRD
  • EU BRRD—key elements
  • EU BRRD—Scope, definitions and authorities
  • EU BRRD—Resolution colleges
  • EU BRRD—Preparative and early intervention measures
  • EU BRRD—Recovery plans
  • EU BRRD—Restrictions on distributions
  • EU BRRD—Early intervention
  • EU BRRD—resolution and resolution plans
  • More...

Bank Recovery and Resolution Directive (BRRD)—essentials

This Practice Note gives a general overview of the Bank Recovery and Resolution Directive 2014/59/EU (EU BRRD) which established a minimum harmonised framework for dealing with failing financial institutions across the EU. The EU BRRD sets out a uniform staged approach for supporting credit institutions that are failing or likely to fail, through the use of preventative and early intervention measures created in order to avoid failure and prevent an automatic recourse to public funding. This Practice Note also considers how the UK implemented the EU BRRD measures, and the divergence in the UK’s approach to bank recovery and resolution as a result of its withdrawal from the EU.

Background to the EU BRRD

As a result of the financial crisis, a number of shortcomings were identified in the way public authorities responded to failing banks. Whilst the substantial injection of public money prevented a major bank failure in the EU, it resulted in considerable strains on public finances and taxpayer funded bail-outs. The EU BRRD came into force on 2 July 2014 and was born out of the need to ensure that in the future, authorities will be equipped with the necessary instruments to make a decisive intervention at a very early stage before the bank starts to fail. A credible and comprehensive recovery and resolution framework is critical not

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