Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions (Bank Recovery and Resolution Directive)

Overview

The Bank Recovery and Resolution Directive (BRRD) establishes a harmonized framework for the recovery and resolution of credit institutions and investment firms. It requires institutions to prepare recovery plans and resolution authorities to prepare resolution plans. The directive provides resolution tools including sale of business, bridge institution, asset separation, and bail-in (write-down and conversion of liabilities). It establishes minimum requirements for own funds and eligible liabilities (MREL) and requires cooperation among resolution authorities. Directive 2014/59/EU applies from 1 January 2015 with bail-in provisions from 1 January 2016.

This eu directive (32014L0059) is part of the EU’s legal framework governing banking. EU banking regulation establishes prudential requirements for credit institutions, implementing international Basel standards and creating a single rulebook for EU banking.

Type: EU Directive

CELEX Number: 32014L0059

Date of Effect: See the official publication in the Official Journal of the European Union.

Key Provisions

Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions (Bank Recovery and Resolution Directive) establishes the core legal framework in this field. For specific provisions, articles, and implementing measures, consult the full text on EUR-Lex.

Significance

This legislation represents a key component of EU law in the area of banking. It reflects the EU’s approach to harmonization and regulatory policy within the internal market framework.