- To the rescue? Contractual recognition of bail-in for financial institutions
- What are the requirements of BRRD, art 55?
- What is the timing?
- How will these requirements be effected in relation to derivative, repo and securities lending transactions?
- Are other industry bodies considering preparing protocols to address BRRD, art 55?
- What problems are they facing?
- What should practitioners do in the meantime for new derivative, repo and securities lending transactions?
Banking & Finance analysis: From 1 January 2016, firms are required to implement article 55 of the Bank Recovery and Resolution Directive (BRRD), which requires EU firms to include a contractual recognition of bail-in clause in a wide range of non-EU law governed contracts. Doug Shaw, managing associate at Linklaters, examines the potential effect of the requirement on transactions, and the current difficulties it is posing for firms.
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