The Position of Creditors Under the BRRD

Commemorative Volume in memory of Professor Dr. Leonidas Georgakopoulos, Bank of Greece’s Center for Culture, Research and Documentation, 2016, pp. 37-61

28 Pages Posted: 2 Dec 2015 Last revised: 22 Sep 2016

See all articles by Jens-Hinrich Binder

Jens-Hinrich Binder

Eberhard-Karls-University - Faculty of Law

Date Written: December 2, 2015

Abstract

Within the European Union, the introduction of new frameworks for the resolution of banks with the Bank Recovery and Resolution Directive (the "BRRD") of 2014 and the Regulation establishing the Single Resolution Mechanism (the "SRM Regulation") have brought about a drastic overhaul of traditional approaches to dealing with the insolvency of systemically important institutions. Under the new toolbox of instruments, unlike in traditional insolvency proceedings, the creditors' position is essentially reduced to ex post compensation, which is available only if and to the extent that they can demonstrate that they would have received a more beneficial treatment in ordinary winding-up. In this light, the present chapter explores the general principles governing the treatment of creditors under the BRRD, the substantive safeguards prescribed in their interest, and their effectiveness both in domestic and cross-border settings.

Keywords: Bank insolvency; bank resolution; BRRD; Single Resolution Mechanism

JEL Classification: G21, K20, K22

Suggested Citation

Binder, Jens-Hinrich, The Position of Creditors Under the BRRD (December 2, 2015). Commemorative Volume in memory of Professor Dr. Leonidas Georgakopoulos, Bank of Greece’s Center for Culture, Research and Documentation, 2016, pp. 37-61. Available at SSRN: https://ssrn.com/abstract=2698086

Jens-Hinrich Binder (Contact Author)

Eberhard-Karls-University - Faculty of Law ( email )

Geschwister-Scholl-Platz
Tuebingen, 72074
Germany
++49-(0)-7071-29-76119 (Phone)
++49-(0)-7071-29-35283 (Fax)

HOME PAGE: http://www.jura.uni-tuebingen.de/professoren_und_dozenten/binder

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