European Banking Resolution
BRRD Directive: the European framework for banking recovery and resolution
By Charlotte GAUCHON6 May 2025The 2008 financial crisis highlighted the need for better supervision of bank failures to protect taxpayers and economic stability. The European Bank Recovery and Resolution Directive (BRRD), initially adopted in 2014 (Directive 2014/59/EU) and revised by BRRD II in 2019 (Directive (EU) 2019/879), is the cornerstone of this new regime. It imposes precise mechanisms on banks and authorities to anticipate and manage crises, marking a decisive step towards a comprehensive view of European banking resolution, the overall Banking Union framework. This article sets out the main features of this complex but essential regulatory framework. What is the Banking Recovery and Resolution Directive (BRRD)? The Banking Recovery and Resolution Directive (BRRD) establishes a set of harmonised rules and procedures within the European Union for managing the difficulties of banks.
The Single Resolution Mechanism (SRM): operation and role of the CRU and FRU
Banking and securities law, European Banking ResolutionAt the heart of the Banking Union, the Single Resolution Mechanism (SRM) has been set up to manage the failure of the largest banks in the participating Member States in a centralised and harmonised way. This mechanism, which is structured around the Single Resolution Board (SRB) and the Resolution Fund (RF),...Understanding European banking resolution: protecting deposits and stability
Banking and securities law, European Banking ResolutionA bank failure may seem like a distant event, but its repercussions have the potential to affect every citizen. To prevent systemic financial crises, such as the one in 2008, and to safeguard depositors' savings without taxpayers having to pay, Europe has set up the Banking Union and its supervisory mechanism...
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