International Banking and Finance Law Series Volume 26
Bank Recovery and Resolution is a book that organises a highly complex legal system into patterns and action plans that can be applied in virtually any eventuality likely to arise in cases where bank business is of central significance. In light of the colossal efforts that have been made worldwide since 2008 to draft rules to prevent a reoccurrence of the disastrous financial events of that year, the bank business has been laid open to the intense public and government scrutiny, and regulation of banking has grown to astounding proportions. Surpassing the other measures taken, the EU Bank Recovery and Resolution Directive (BRRD) along with the Single Resolution Mechanism (SRM) and the Single Resolution Fund model a pivotal new pillar in the European Banking Union.
What’s in this book:
This significant and well-researched book sets the new rules under BRRD into their full context as cross-border phenomena. With its lucid explanation of fundamental provisions, procedures, and ‘triggers’, it highlights the following topics:
– entities covered by BRRD;
– exceptions under BRRD;
– objective and scope of BRRD tools – bail-in, bridge bank, sale of business, asset separation;
– asset quality reviews;
– curing or mitigating the continuing problem of non-performing loans;
– new rules as a response to lack of private solutions;
– banks’ requirement to provide a minimum amount of eligible liabilities;
– safety buffers to protect resolution;
– need to be ‘resolvable’ in the worst case;
– leverage and liquidity ratios;
– forced mergers;
– market spillover effects of recovery planning;
– group recovery planning;
– effects of foreign law contracts and assets;
– write-down of capital instruments; and
– special problems of cross-border restructuring.
This compendium is augmented by a comparative dimension, which includes a reference to the United States and other national developments and an exhaustive analysis of Switzerland’s regulatory response to the crisis. For the second edition, the recent substantial changes to BRRD and SRM, as well as practical restructuring and resolution cases, have been reflected. A particular focus has been placed on resolution planning and the revised requirements for MREL (Minimum Requirements for Own Funds and Eligible Liabilities) and possible strategies.
How this will help you:
Considering that a coherent and flawless global system of bank recovery and resolution has not yet been established and that major banks are global players headquartered in different jurisdictions and even different continents, this book will immensely facilitate the work of practitioners who must deal with cases involving international banking under the prevailing status quo. Its practicality to officials and academics in international banking and finance law and policy, who are working towards a global solution, is of incomputable value.
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Preface to the Second Edition
Preface to the First Edition
List of Abbreviations
Bank Restructuring: What Have We Seen in the Past?
Intragroup Financial Support and Early Intervention
Resolution Planning and MREL
Epilogue by Dr Mariana Wiederkehr: Comparative Bank Recovery and Resolution – The Swiss Legal Framework
Appendix Secondary Legislation and Technical Standards Still to Come