Press Release: State aid: Commission adapts crisis rules for banks

The European Commission has adapted its temporary state aid rules for assessing public support to financial institutions during the crisis.

The main changes are aimed at improving the restructuring process and the level playing field between banks. In particular, banks will be required to work out a sound plan for their restructuring or orderly winding down before they can receive recapitalisations or asset protection measures. Moreover, in case of capital shortfalls, bank owners and junior creditors will be required to contribute as a first resort, before banks can ask for public funding.