4.5.4 Exercise of resolution powers

When the national resolution authorities implement a resolution scheme of the SRB or apply a resolution tool on their own decision (in or outside the SRM), they may exercise the resolution powers. In short, the resolution powers assist the resolution authorities in implementing the resolution tools. The powers, for example, include the power to require information, the power to take control of a bank in resolution, the power to transfer shares, assets, rights or liabilities, the power to write down and covert regulatory capital and eligible liabilities, the power to remove or replace the management body and senior management of a bank in resolution and the power to appoint a special manager.1 When resolution authorities exercise a resolution power, they can also exercise the so-called ‘ancillary powers’.2 These include the powers to require the relevant authority to discontinue or suspend the admission to trading on a regulated market, cancel or modify the terms of a contract, remove rights to acquire further shares or other instruments of ownership, etc.3

The resolution powers can be exercised individually or in any combination.4 If the resolution authorities exercise a resolution power, they are not subject to any requirements to (a) obtain approval or consent from any person either public or private, including the shareholders or creditors of the bank in resolution, or (b) notify any person, including any requirement to publish any notice or prospectus or to file or register any document with any other authority.5 This is without prejudice to any notification requirements under the State aid regime, the procedural obligations of resolution authorities set out in Article 81 and 83 BRRD and the obligation to inform the competent ministry, if the resolution authority is not the competent ministry.6 In addition, Member States may require that a decision to exercise a resolution power is subject to ex ante judicial approval.7