Are Credit Institutions in the Banking Union (BU) Resolvable?

This study discusses whether credit institutions established in the Member States participating in the (European) Banking Union (BU) are resolvable. It is structured in five Sections: Section I provides an overview of the legislative acts which constitute the “EU banking resolution framework” (including the rules on credit institutions’ loss absorption and recapitalisation capacity), as these were shaped under the influence of international financial standards. The following Section II contains a brief analysis of the rules governing the assessment of resolvability of credit institutions in the BU and the removal of substantive impediments thereto. Sections III and IV focus then, respectively, on the 2020 document of the Single Resolution Board (SRB) “Expectations for Banks”, which was the accelerator for further action by that EU agency, as well as on the application of the resolution planning framework by the SRB, with specific emphasis on the 2020 “SRB MREL Policy under the Banking…