Bank Resolution and 'Bail-In' in the EU : Selected Case Studies Pre- and Post-BRRD

In the aftermath of the 2007/08 financial crisis, and lacking sufficient coordinated guidelines or legislation, measures to address failing financial institutions in European Union (EU) Member States were taken at national level. In an effort to im...

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Main Author: World Bank Group
Format: Working Paper
Language:English
en_US
Published: World Bank, Vienna 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/731351485375133455/Bank-resolution-and-bail-in-in-the-EU-selected-case-studies-pre-and-post-BRRD
http://hdl.handle.net/10986/25975
id okr-10986-25975
recordtype oai_dc
spelling okr-10986-259752021-06-14T10:13:01Z Bank Resolution and 'Bail-In' in the EU : Selected Case Studies Pre- and Post-BRRD World Bank Group bank crisis resolution asset management bail-in bridge bank recapitalization nationalization In the aftermath of the 2007/08 financial crisis, and lacking sufficient coordinated guidelines or legislation, measures to address failing financial institutions in European Union (EU) Member States were taken at national level. In an effort to improve cross border coordination as well as to reduce future dependence on public money, the European framework for managing the failure of financial institutions was reformed, building upon the financial stability Board’s key attributes. From January 1, 2015, all EU Member States were required to transpose the Bank Recovery and Resolution Directive (BRRD) into their national law. A key element of the new powers is the bail-in tool, requiring banks to recapitalize and absorb losses from within, which was made mandatory as of January 1, 2016. These case studies have been selected as examples of how some EU countries tackled the resolution of several failing European banks. The focus of the case studies is on the application of bail-in features, i.e. statutory private loss absorption outside liquidation. Most cases studies also describe other measures used to deal with distressed financial institutions, including but not limited to government guarantees, capital injections, liquidity supports, and the creation of asset management vehicles to put the bail-in into perspective. The authors hope that, nevertheless, these real life examples of European banks’ resolutions provide a useful and interesting source of reference. For more details on resolution under the BRRD, the authors invite the readers to refer to the FinSAC Guidebook Understanding Bank Recovery and Resolution in the EU: a Guidebook to the BRRD. 2017-01-31T19:32:07Z 2017-01-31T19:32:07Z 2016-12-12 Working Paper http://documents.worldbank.org/curated/en/731351485375133455/Bank-resolution-and-bail-in-in-the-EU-selected-case-studies-pre-and-post-BRRD http://hdl.handle.net/10986/25975 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Vienna Publications & Research Publications & Research :: Working Paper Europe and Central Asia European Union
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic bank crisis resolution
asset management
bail-in
bridge bank
recapitalization
nationalization
spellingShingle bank crisis resolution
asset management
bail-in
bridge bank
recapitalization
nationalization
World Bank Group
Bank Resolution and 'Bail-In' in the EU : Selected Case Studies Pre- and Post-BRRD
geographic_facet Europe and Central Asia
European Union
description In the aftermath of the 2007/08 financial crisis, and lacking sufficient coordinated guidelines or legislation, measures to address failing financial institutions in European Union (EU) Member States were taken at national level. In an effort to improve cross border coordination as well as to reduce future dependence on public money, the European framework for managing the failure of financial institutions was reformed, building upon the financial stability Board’s key attributes. From January 1, 2015, all EU Member States were required to transpose the Bank Recovery and Resolution Directive (BRRD) into their national law. A key element of the new powers is the bail-in tool, requiring banks to recapitalize and absorb losses from within, which was made mandatory as of January 1, 2016. These case studies have been selected as examples of how some EU countries tackled the resolution of several failing European banks. The focus of the case studies is on the application of bail-in features, i.e. statutory private loss absorption outside liquidation. Most cases studies also describe other measures used to deal with distressed financial institutions, including but not limited to government guarantees, capital injections, liquidity supports, and the creation of asset management vehicles to put the bail-in into perspective. The authors hope that, nevertheless, these real life examples of European banks’ resolutions provide a useful and interesting source of reference. For more details on resolution under the BRRD, the authors invite the readers to refer to the FinSAC Guidebook Understanding Bank Recovery and Resolution in the EU: a Guidebook to the BRRD.
format Working Paper
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Bank Resolution and 'Bail-In' in the EU : Selected Case Studies Pre- and Post-BRRD
title_short Bank Resolution and 'Bail-In' in the EU : Selected Case Studies Pre- and Post-BRRD
title_full Bank Resolution and 'Bail-In' in the EU : Selected Case Studies Pre- and Post-BRRD
title_fullStr Bank Resolution and 'Bail-In' in the EU : Selected Case Studies Pre- and Post-BRRD
title_full_unstemmed Bank Resolution and 'Bail-In' in the EU : Selected Case Studies Pre- and Post-BRRD
title_sort bank resolution and 'bail-in' in the eu : selected case studies pre- and post-brrd
publisher World Bank, Vienna
publishDate 2017
url http://documents.worldbank.org/curated/en/731351485375133455/Bank-resolution-and-bail-in-in-the-EU-selected-case-studies-pre-and-post-BRRD
http://hdl.handle.net/10986/25975
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