| Author (Corporate) | European Parliament: European Parliamentary Research Service |
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| Publisher | EU |
| Series Title | In-Depth Analysis |
| Series Details | July 2016 |
| Publication Date | July 2016 |
| ISBN | 978-92-823- |
| Content Type | Report |
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Please note: Each In-Depth Analysis is assigned a DOI (digital object identifier), which is a safe and long term way of ensuring a hyperlink to the full text of this report. However, when ESO creates this record, on occasion the DOI still has not been activated by the EU Bookshop. If you find the source url hyperlink does not work please use the alternative location hyperlink listed as a related url.This briefing provides a list of recent banking resolution cases involving the use of State aid or other public interventions, and gives an overview the various legal issues linked to State aid rules and the BRRD. Since 1 January 2016 it is mandatory under the Bank Recovery and Resolution Directive (BRRD) to bail-in shareholders and creditors for a minimum amount of 8% of total liabilities before any funds from the Single Resolution Fund may be injected into a bank under resolution. A number of national competent authorities therefore triggered the resolution of weak banks before the deadline of 31 December 2015. However, since 2013 EU State aid rules have imposed (the '2013 Banking Communication') that subordinated creditors contribute to the maximum extent (bail-in) to the restructuring of State-aided institutions. All the resolution cases presented below and approved by the European Commission have complied with the State-aid requirement to bail-in subordinated creditors. Author: Benoit Mesnard |
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| Source Link | Link to Main Source http://www.europarl.europa.eu/RegData/etudes/IDAN/2016/574395/IPOL_IDA(2016)574395_EN.pdf |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
