Can corporate deposits be excluded from bail-in in the context of Article 44 of the BRRD?
In order to seek for further funding from alternative financing sources, one of the conditions according to Article 44(7)(b) of the BRRD, is that “all unsecured, non-preferred liabilities, other than eligible deposits, should have been written down or converted in full.”
The wording suggests that in addition to natural, micro small and medium sized deposits, corporate deposits could also be excluded from bail-in. This seems to be compatible with other parts of the Directive, such as Articles 44(3)(c) and 108.
Article 44(7)(b) of Directive 2014/59/EU (BRRD) refers to all eligible deposits. Corporate deposits are eligible deposits within the meaning of Article 2(71) BRRD and they can be excluded from bail-in if the conditions of Article 44(3) BRRD are met.
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.
Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.