Peter King considers the implementation of the Bank Recovery and Resolution Directive in a new article in the Butterworths Journal of International Banking and Financial Law.
- Full implementation leaves uncertainties which are unlikely to be resolved until the failure of a major bank.
- A particular problem is whether a court outside the EU would recognise a bail-in ordered by a resolution authority in another EU member state.
- The interaction between “market contracts” and bail-in powers (where, for instance, a bank acting as a clearing member is subjected to bail-in) remains unclear.
Please click here for the full article, “The EU Bank Recovery and Resolution Directive: moving towards full implementation”.