EP publishes RRD report

04 June 2013

The EP has published the report on the proposed Bank Recovery and Resolution Directive (RRD) adopted by the ECON Committee on 20 May. ECON has made the following amendments to the Commission's original proposals.

• The bail-in tool should not affect insured deposits nor interbank money market operations with an original maturity of less than one month. Non-insured deposits should be the last category of liabilities to be bailed in.
• Compensation to holders of written-down instruments should be based on the value of the firm at the point of non-viability.
• Once a firm has been put under resolution, shareholders should no longer retain responsibility over the firm and resolution authorities should have the power to replace the management body of a firm with a special manager.
• Resolution authorities should be able to depart from the principle of equal distribution among creditors within the same class where financial stability concerns justify it.
• Group recovery and resolution plans should take into account their potential impact in all the Member States where the group operates.
• Prudential supervisors in any Member State should not also be the resolution authority.

Report by Rapporteur Hökmark

LEX Reporting

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