Bank Resolution (BRRD) Part 1 (Directive)
The Commission is seeking to prevent banking crises, strengthen financial stability and ensure that taxpayers do not shoulder the burden of future banking crises by establishing a recovery and resolution regime for banks and investment firms. Part 1 of the CEP Policy Brief deals with recovery and resolution plans and with further crisis prevention measures.
The creation of a resolution and recovery regime is essential. Recovery plans contribute to crisis prevention. Resolution plans are imperative, as is the ability of the authorities to order an institution to implement any of a wide range of measures to achieve resolvability. Special managers and remedies prescribed as part of the recovery planning are only acceptable for institutions which cannot be resolved without state aid.