(Information on the Banking Recovery and Resolution Directive)
An in-depth look at the requirements of the Banking Recovery and Resolution Directive that applies to banks and investment banking companies.
The implementation of the Directive 2014/59/EU (the so-called Banking Resolution and Recovery Directive, “BRRD”) establishes a harmonized regime within the EU for the prevention and management of crisis in banks and investment companies and it aims to manage banking crises in order to ensure the continuity of their critical financial and economic functions, while minimizing the impact of their failure on the economy and financial system, as well as the costs for taxpayers, through the use of resolution tools headed by the private sector.
The regulation implementing the BRRD briefly states that, when the conditions are met for the initiation of crisis management procedures for an institution which is failing or likely to fail, the local Regulatory Authority can provide for: