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Use of resolution tools without issuing a formal decision

In light of Article 32(1) and Article 82 of Directive 2014/59/EU (BRRD), should the decision initiating resolution spell out which resolution tool/s, among those listed in Article 37(3) BRRD, will be applied, or is it possible to apply resolution tools without issuing a formal decision?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2016_2621 | Topic: Resolution objectives and triggers | Date of submission: 12/02/2016 | Date of publication: 21/01/2022

Determination made by competent authority

Must the “determination made by competent authority”, mentioned in Article 32(1)(a) of the Directive 2014/59/EU (BRRD), be enshrined in a formal decision of the competent authority?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2177 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015 | Date of publication: 21/01/2022

Declaration of insolvency / bankruptcy

When the entity is failing or likely to fail and the public interest condition referred to in Directive 2014/59/EU (BRRD) is not fulfilled, who is supposed to take initiative for the purpose of the entity’s bankruptcy motion? How do the determination under Article 82(2) BRRD and the assessment of resolvability under Articles 15 and 16 BRRD relate to each other?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2176 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015 | Date of publication: 21/01/2022

Determination the failure of an institution

If, when performing the valuation under Article 36 of Directive 2014/59/EU (BRRD), the resolution authority finds that the conditions for resolution or for the write down or conversion of capital instruments and eligible liabilities in accordance with Article 59 are not met, can it ‘reverse’ the competent authority’s determination that the institution is failing or likely to fail?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2174 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015 | Date of publication: 21/01/2022

Stating in law that banks’ activities are always in the public interest

Is it compliant with Directive 2014/59/EU (BRRD) if the national transposition measure provides that it is always in the public interest to take resolution action in relation to all credit institutions?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2173 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015 | Date of publication: 21/01/2022