The European Banking Authority (EBA) published today its final Guidelines specifying the type of tests, review or exercises that may lead to extraordinary public support measures for institutions in the banking sector. These Guidelines aim at promoting a consistent and coherent approach to bank resolution across the European Union and will be part of the EU Single Rulebook in the banking sector.
The Bank Recovery and Resolution Directive (BRRD) defines a harmonised regulatory framework for resolving institutions across the EU. It establishes that resolution should be primarily and almost exclusively financed by private resources, in order to avoid, as far as possible, resorting to taxpayers' funds when dealing with unsound or failing credit institutions and investment...
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