Janssen, Lynette --- "The EU bank resolution rules and national insolvency law" [2019] ELECD 1627; in Haentjens, Matthias; Wessels, Bob (eds), "Research Handbook on Cross-Border Bank Resolution" (Edward Elgar Publishing, 2019) 102

Book Title: Research Handbook on Cross-Border Bank Resolution

Editor(s): Haentjens, Matthias; Wessels, Bob

Publisher: Edward Elgar Publishing

Section: Chapter 5

Section Title: The EU bank resolution rules and national insolvency law

Author(s): Janssen, Lynette

Number of pages: 30

Abstract/Description:

The Bank Recovery and Resolution Directive strengthened and harmonized the bank resolution frameworks of the EU Member States. It introduced an administrative, non-judicial resolution procedure to mitigate risks to financial stability and ensure continued access to critical functions if a bank fails. The insolvency laws of the Member States play an important role in the national resolution frameworks. The EU bank resolution rules require specific results in national law and refer to national insolvency law for their application and interpretation. For example, insolvency law determines the priority amongst creditors in bail-in and governs the conditions and procedures for the liquidation of (a part of) a bank. The analysis shows that important differences exist between the national bank resolution and insolvency frameworks as a result of differences in national insolvency laws. The observations might be relevant in academic and policy discussions about the further harmonization of the EU bank resolution framework.