Recitals
- Recital (1)The Union resolution framework for credit institutions and investment firms (institutions) was established in the aftermath of the…
- Recital (2)Several years into its implementation, the Union resolution framework does not deliver as intended with respect to some of those…
- Recital (3)One of the main objectives of reviewing Directive 2014/59/EU is to better safeguard taxpayers’ money by ensuring that the resolution…
- Recital (4)The intensity and level of detail of the resolution planning work needed with respect to subsidiaries that have not been identified as…
- Recital (5)An institution or entity that is being wound up under national law, following a determination that the institution or entity is failing or…
- Recital (6)The procedure for the submission of information, by entities that are part of a group, to resolution authorities for the preparation of…
- Recital (7)Resolution authorities can currently decide to prohibit certain distributions where an institution or entity, whether or not it is a…
- Recital (8)Early intervention measures were introduced to enable competent authorities to remedy the deterioration of the financial and economic…
- Recital (9)To improve legal certainty, the early intervention measures laid down in Directive 2014/59/EU that overlap with existing powers under the…
- Recital (10)It is necessary to ensure timely action and early coordination between the competent authority and the resolution authority while an…
- Recital (11)The resolution framework is meant to have the potential to be applied to any institution or entity, irrespective of its size and business…
- Recital (12)During the resolution planning stage, when deciding whether an institution should be earmarked for resolution, the fact that an institution…
- Recital (13)The winding up of an entity under normal insolvency proceedings might, in some cases, jeopardise financial stability and interrupt the…
- Recital (14)When carrying out the public interest assessment, resolution authorities should assess whether any of the resolution objectives would be at…
- Recital (15)Where a failing institution or entity is not placed under resolution, it should be wound up in accordance with the procedures available…
- Recital (16)It should be ensured that the competent authority or the resolution authority initiates or requests the initiation of a procedure under…
- Recital (17)It should also be laid down that the final outcome of winding up procedures is the termination of banking activities leading to the exit of…
- Recital (18)Competent authorities should be empowered to withdraw the authorisation of an institution or entity solely on the basis of the fact that…
- Recital (19)In light of the experience acquired in the implementation of Regulation (EU) No 806/2014 and Directives 2014/49/EU and 2014/59/EU, it is…
- Recital (20)To preserve market discipline, protect public funds and avoid distortions of competition, precautionary measures should remain the…
- Recital (21)The aim of precautionary recapitalisation is to support viable institutions and entities identified as likely to encounter temporary…
- Recital (22)Precautionary measures should be limited to the amount that the institution or entity would need to maintain its solvency in the event of…
- Recital (23)To cover material infringements of prudential requirements, it is necessary to further specify the conditions for determining that holding…
- Recital (24)Member States might have, under national law, powers to suspend payment or delivery obligations that can include eligible deposits. Where…
- Recital (25)To increase legal certainty, and in view of the potential relevance of liabilities arising from future uncertain events, including the…
- Recital (26)It should also be specified that liabilities of uncertain timing or amount, where those liabilities are based on present obligations…
- Recital (27)It is necessary to ensure that a liability that could arise in the future from an uncertain event or a liability of uncertain timing or…
- Recital (28)In certain circumstances, after the resolution financing arrangement has provided a contribution up to the maximum of 5 % of the…
- Recital (29)Deposits that meet the conditions to qualify as eligible liabilities can be used towards compliance with the MREL. However, given the…
- Recital (30)In order to avoid cliff-edge effects, it is necessary to grandfather the existing deposits qualifying as eligible liabilities. For deposits…
- Recital (31)Regulations (EU) 2019/876 and (EU) 2019/877 of the European Parliament and of the Council and Directive (EU) 2019/879 of the European…
- Recital (32)For certain resolution entities, the preferred resolution strategy set out in the resolution plan or the group resolution plan primarily…
- Recital (33)Directive 2014/59/EU does not include dedicated rules on transitional arrangements and intermediate target levels for meeting the MREL…
- Recital (34)Institutions and entities are required to include contractual recognition of the effects of the bail-in tool in agreements or instruments…
- Recital (35)To facilitate resolution planning, the assessment of resolvability and the exercise of the power to address or remove impediments to…
- Recital (36)As the provision of information related to the aggregated number of customers for which an institution or entity is the only or principal…
- Recital (37)There are interactions between the resolution framework and the market abuse framework. In particular, while actions taken in resolution or…
- Recital (38)An adequate link between pay and performance should also be maintained in the event of resolution, in particular where losses are likely to…
- Recital (39)After the initial build-up period for the resolution financing arrangements provided for in Directive 2014/59/EU, their respective…
- Recital (40)Irrevocable payment commitments are one of the components of the available financial means of resolution financing arrangements. It is…
- Recital (41)The maximum annual amount of extraordinary ex post contributions to resolution financing arrangements that are allowed to be called is…
- Recital (42)Directive 2014/59/EU partially harmonised the ranking of deposits under national laws governing normal insolvency proceedings. Those rules…
- Recital (43)The ranking of deposits should be fully harmonised through the implementation of a general depositor preference, whereby all deposits…
- Recital (44)It is appropriate for certain non-eligible deposits to be excluded from the general depositor preference. In particular, deposits taken by…
- Recital (45)The current three-tier ranking of deposits should be retained, as it strongly protects the claims of DGSs and consequently their financing…
- Recital (46)Resolution financing arrangements can be used to support the application of the sale of business tool or of the bridge institution tool…
- Recital (47)To ensure sufficient flexibility and to make it easier for DGSs to intervene in support of the use of the resolution tools, where they lead…
- Recital (48)The contribution of the DGS in resolution should be subject to certain limits. First, the total amount of the contribution of the DGS in…
- Recital (49)It should be specified that the DGS should only be able to contribute to a transfer of liabilities other than covered deposits in the…
- Recital (50)Given the possibility to use DGS in resolution, it is necessary to further specify the conditions under which the DGS contribution can…
- Recital (51)If the contribution made by shareholders and creditors of the institution under resolution through reductions, write-down or conversion of…
- Recital (52)In extraordinary circumstances, it can occur that the contribution of the resolution financing arrangement of 5 % of total liabilities…
- Recital (53)Where the funds of the DGS are used in the application of the sale of business tool or the bridge institution tool, in isolation or…
- Recital (54)To facilitate the process of adoption of highly technical aspects of reporting requirements, and improve their implementation and…
- Recital (55)To allow for a greater integration of reporting and disclosures related to the MREL, EBA should publish institutions and entities’…
- Recital (56)In view of its role in furthering the convergence of authorities’ practices, EBA should monitor and report on the internal practices and…
- Recital (57)In the context of EBA’s tasks of contributing to ensuring a coherent and coordinated crisis management and resolution regime in the Union,…
- Recital (58)Notwithstanding currently applicable professional secrecy rules, exchanges of information between resolution authorities and tax…
- Recital (59)Directive (EU) 2019/879 amended Directive 2014/59/EU to introduce dedicated rules to ensure that retail clients do not invest excessively…
- Recital (60)High-quality impact assessment is crucial for the development of sound and evidence-based legislative proposals, while facts and evidence…
- Recital (61)Considering the need to protect financial stability and to act swiftly, resolution authorities should not be subject to the procedures for…
- Recital (62)Since the objective of this Directive, namely to improve the effectiveness and efficiency of the recovery and resolution framework for…
- Recital (63)Directives 2014/59/EU and 2014/24/EU should therefore be amended accordingly,
Text as published in the Official Journal; for the authentic version, see EUR-Lex.
