TOWARDS ESTABLISHING A GENUINE RESOLUTION REGIME FOR BANKS IN THE EUROPEAN UNION
Abstract
The article traces the evolution of the European Commission’s ideas and proposals for the establishment of a genuine resolution regime for credit institutions in Member States and the Banking Union. It examines the common resolution regime, to be introduced by the Bank Recovery and Resolution Directive, which will serve as a basis for the operation of the Single Resolution Mechanism within the Banking Union. The analysis focuses on the characteristic features of the bail-in tool as an alternative to bailout. Special emphasis is placed on the on-going debate at the EU institutions on selected key issues of bank resolution and bail in, as reflected by comparing the initial Commission proposal for the Bank recovery and resolution Directive with the follow up Council’s general approach agreement on it.
JEL Classification
References
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