Implementation of bank resolution in the EU

From the start of this year onwards, new rules for bank resolution are in place – as spelled out in the Bank Recovery and Resolution Directive (BRRD) – across the EU, and a new authority (the Single Resolution Board, or SRB) is fully operational for resolving all banks in the eurozone. The implementation issues of the new regime are enormous. Banks need to develop recovery plans, and authorities need to create resolution plans as well as set the minimum required amount of own funds and eligible liabilities (MREL) for each bank. To explore these challenges, CEPS formed a Task Force last year composed of experience, senior banking experts and charunder

A new CEPS report sets out how the authorities and banks can meet this challenge. The recommendations are the result of a series of discussions held among a group of senior experts chaired by Thomas Huertas, in the context of the CEPS Task Force on Financial Sector Resolution. This interim report, which focuses exclusively on the pending issues related to banking sector resolution, was presented and discussed by the Chair of the Single Resolution Boards (SRB), Elke König, on January 26th at CEPS.

Later this year, this report will be followed-up with contributions on the resolution of non-bank financial institutions.

The CEPS Task Force report “European Bank Resolution: Making it work!”, is freely downloadable at the CEPS-website:

www.ceps.eu/publications/european-bank-resolution-making-it-work