Franke, Günter Krahnen, Jan Pieter von Lüpke, Thomas
Year of Publication:
SAFE White Paper 19
This essay reviews a cornerstone of the European Banking Union project, the resolution of systemically important banks. The focus is on the inherent conflict between a possible intervention by resolution authorities, conditional on a crisis situation, and effective prevention prior to a crisis. Moreover, the paper discusses the rules for bail-in debt and conversion rules for different layers of debt. Finally, some organizational requirements to achieve effective resolution results will be analyzed.
Bank Recovery and Resolution Directive (BRRD) Single Resolution Mechanism (SRM) Bail-in