Einde inhoudsopgave
State aid to banks (IVOR nr. 109) 2018/4.2.1
4.2.1 The background of the BRRD
mr. drs. R.E. van Lambalgen, datum 01-12-2017
- Datum
01-12-2017
- Auteur
mr. drs. R.E. van Lambalgen
- JCDI
JCDI:ADS584732:1
- Vakgebied(en)
Financieel recht / Europees financieel recht
Mededingingsrecht / EU-mededingingsrecht
Voetnoten
Voetnoten
On 20 October 2009 and on 26 May 2010, the Commission had already adopted a Communication “An EU Framework for Cross-Border Crisis Management in the Banking Sector” respectively a Communication “Bank Resolution Funds”.
Point 21 of the G20 Toronto Summit Declaration of June 2010.
NB: in October 2014, the Key Attributes were updated.
The Single Rule Book is sometimes considered to be the foundation of the Banking Union. However, it should be kept in mind that the Banking Union only concerns banks in the Eurozone, while the Single Rule Book applies to all banks in the EU.
The CRD IV-package consists of a Regulation and a Directive. The CRD IV-package is an implementation of Basel III. In addition, it includes some new elements. Basel III/CRD IV is intended to make banks stronger and more resilient. Basel III/CRD IV changes the capital requirements: it requires higher capital buffers, and capital buffers of better quality.
One of the first steps towards a recovery and resolution framework was the adoption of the Commission Communication of 20 October 2010 “An EU Framework for Crisis Management in the Financial Sector”.1 In this Communication, the Commission set out plans for an EU framework for crisis management in the financial sector. On 6 June 2012, the Commission adopted a legislative proposal for bank recovery and resolution. This eventually led to the BRRD, which was adopted on 15 May 2014.
The adoption of the BRRD should be seen in the context of steps taken at the international level: at the G20 Toronto Summit of June 2010, the FSB was called to develop “concrete policy recommendations to effectively address problems associated with, and resolve, systemically important financial institutions”.2 Accordingly, in October 2011, the FSB issued Key Attributes of Effective Resolution Regimes for Financial Institutions.3 The BRRD is in line with these Key Attributes.4
The BRRD is part of the Single Rule Book, which is a single set of harmonized prudential rules which all banks in the EU should respect.5 Another main element of the Single Rule Book is the CRD IV-package.6 While the BRRD is part of the Single Rule Book, the SRM is part of the Banking Union – which will be discussed in the following subsection.