The Recovery Framework in the BRRD and its Effectiveness

Forthcoming in International Company and Commercial Law Review ; I.C.C.L.R. 2015, 26(10)

Nordic & European Company Law Working Paper No. 15-04

18 Pages Posted: 28 May 2015 Last revised: 9 Oct 2015

See all articles by Chen Chen Hu

Chen Chen Hu

University of Copenhagen Faculty of Law

Date Written: May 19, 2015

Abstract

The EU has made great endeavors in establishing a bank resolution procedure after the global financial crisis (GFC). In April 2014 the directive on establishing a framework for the recovery and resolution of credit institutions and investment firms (referred to as The Bank Recovery and Resolution Directive, the BRRD) was finally adopted, which set up the basic framework for the resolution regime in the EU. The BRRD includes a three-step resolution framework: recovery and resolution planning, the early intervention, and the resolution. This article analyses the effectiveness of the pre-resolution recovery framework, including the intra-group support, recovery and resolution planning, and the early intervention in the wake of bank failures, such as Lehman Brothers fall. It aims at assessing to which extent the new recovery framework enhances the resilience of banks and facilitates orderly resolution procedure of failing banks.

Keywords: intra-group support, recovery and resolution planning, early intervention

JEL Classification: K22

Suggested Citation

Hu, Chen Chen, The Recovery Framework in the BRRD and its Effectiveness (May 19, 2015). Forthcoming in International Company and Commercial Law Review ; I.C.C.L.R. 2015, 26(10), Nordic & European Company Law Working Paper No. 15-04, Available at SSRN: https://ssrn.com/abstract=2610594 or http://dx.doi.org/10.2139/ssrn.2610594

Chen Chen Hu (Contact Author)

University of Copenhagen Faculty of Law ( email )

Studiestraede 6
Studiestrade 6
Copenhagen, Copenhagen DK-1455
Denmark

HOME PAGE: http://jura.ku.dk/cfe/english/staff/?pure=en/persons/441206

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