The European Banking Authority (EBA) published today a discussion paper exploring ways on how to enhance the Bank Recovery and Resolution Directive (BRRD) framework on early intervention measures. The objective is to further enhance crisis management tools available for competent authorities in addition to well-established and widely used supervisory powers laid down in the Capital Requirements Directive (CRD) and in the Single Supervisory Mechanism Regulation (SSMR).   

The BRRD introduced early intervention measures (EIMs) to expand the existing set of powers available to supervisors towards institutions in difficulties. While monitoring the application of EIMs in 2015-2018, the EBA observed a limited use of EIMs across the European Union (EU) during that period. Instead of EIMs, the competent authorities often preferred to apply other pre-BRRD supervisory powers available to them.

The EBA investigated the reasons for these supervisory practices. While recognising that EIMs could be successfully implemented under the existing regulatory framework, the EBA identified some challenges in their application, and is now putting for discussion potential solutions aimed at enhancing the framework.

Consultation process

In order to broaden the supervisory discussion on EIMs conducted among the EU competent authorities, the EBA also invites views from external stakeholders. In particular, the EBA welcomes input from legal professionals, academics and supervisors from outside of the EU.

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 25 September 2020. All contributions received will be published following the end of the consultation, unless requested otherwise.

Legal basis

Early intervention measures are available to competent authorities pursuant to Articles 27-29 of Directive 2014/59/EU (BRRD). Other supervisory powers include for instance supervisory measures pursuant to Article 104 and 105 of Directive 2013/36/EU (CRD) and Article 16 of Regulation 1024/2013 (SSM-R).