Failing banks and investment firms: rules and procedures Regulation (EU) No 806/2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund Regulation (EU) 2019/877 amending Regulation (EU) No 806/2014 as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms Regulation (EU) […]
Reorganisation and winding-up of credit institutions Directive 2001/24/EC — a single bankruptcy procedure for banks with branches in more than one EU country It aims to ensure that, where a credit institution (generally a bank) with branches in other EU countries fails, a single bankruptcy procedure is applied to all creditors and investors. Kèy Points The directive: — applies the principle of home country control. This […]
Banks and investment firms — prudential supervision Directive 2013/36/EU — banks and investment firms — prudential supervision The capital requirements directive — known as ‘CRD IV’ — governs access to the deposit-taking activities of banks and investment firms. It replaces the former capital requirements directives (2006/48/EC and 2006/49/EC). It covers topics previously dealt with by those directives, including those relating to: — access to the taking […]
Free movement of capital in the EU Council Directive 88/361/EEC — the capital liberalisation directive It was designed to give the European Union (EU) single market its full financial dimension. Its purpose was to progressively abolish all restrictions on the free movement of capital between EU countries, implementing Article 67 of the Treaty establishing the European Communities (Article 67 was subsequently repealed). The rules of […]
Restructuring and Bank Rescue The European Commission produced State aid rules to assess public support of financial institutions during the financial crisis. The framework provides common conditions at EU level for access to public support and requirements for such aid to be compatible with the internal market. The Commission may approve State support to remedy a serious disturbance in the economy of a State. The […]
Assignment and Securitisation Modern larger scale bank loan facilities commonly provide for loan assignment and securitisation. This enables the bank to transfer the loan of the benefit of the loan to another, enabling it to make fresh loans and earn additional profit. The bulk of the work is likely to be involved in setting up the loan and accordingly, this may be the more profitable […]