Public funding of failing banks in the European Union (LBF vol. 19) 2020/7.4:7.4 Burden-sharing

Public funding of failing banks in the European Union (LBF vol. 19) 2020/7.4

7.4 Burden-sharing

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

The restructuring of a bank does not only involve the bank, but also its shareholders and creditors. They can be required to contribute to the costs of the bank failure. This is also referred to as ‘burden-sharing’. This section aims to shed more light on the concept of burden-sharing and the development thereof after the introduction of the resolution framework.

Although, burden-sharing may be the topic that receives most attention, the other powers that the resolution authorities have under the resolution framework to interfere in the contractual relationship between a bank and is shareholders/creditors are also noteworthy and new with reference to the State aid regime for the banking sector. These powers have been discussed in section 4.8. This section focuses on burden-sharing.

7.4.1 Burden-sharing under the State aid regime7.4.2 Burden-sharing under the resolution framework7.4.3 Co-existence of burden-sharing requirements

Deze functie is alleen te gebruiken als je bent ingelogd.