Resolution: Concepts, Requirements and Tools
Jens-Hinrich Binder and Dalvinder Singh (eds.), Bank Resolution: The European Regime, Oxford University Press, 2015/2016, Forthcoming
30 Pages Posted: 24 Sep 2014 Last revised: 10 Jul 2015
Date Written: September 22, 2014
With a harmonised 'toolbox' of instruments for the resolution of banking institutions, the European Bank Recovery and Resolution Directive of 2014 (Directive 2014/59/EU, "BRRD") significantly widens the range of policy options available to national resolution authorities in accordance with international best practice. This paper, prepared for a conference volume to be published in 2015, analyses the harmonised toolbox in the light of the academic literature on bank resolution published both before and in reaction to the global financial crisis. The focus is on the relevant policy objectives, conditions and requirements for resolution, and the five resolution tools prescribed by the BRRD, i.e., the sale of business, bridge institutions, asset separation and bail-in tools.
Keywords: Bank resolution, BRRD, transfer mechanism, bridge institution, asset management companies, bail-in
JEL Classification: G21, G33, K23, K29
Suggested Citation: Suggested Citation