Friday, August 12, 2016

Bank Recovery and Resolution Directive (BRRD)




EU Bank Bail In Directive

Well the above article is rather long so congratulations if you get through all of it.

Bank Recovery and Resolution Directive (BRRD)  is in part a set of directives that say that a Bank in trouble must first take funds from existing depositors before seeking Government assistance.   By various criteria then, the banks must first take money from depositors (i.e. this could be your or I) to resolve their crisis.

The idea behind this is that Banks therefore will behave in a more suitable less irresponsible fashion to avoid the possibility of /really pissing off/ their most significant clients.

At the same time the EU has performed a 2016 Bank stress test to see if any of the EU Banks are noticeable vulnerable to failure.


More research came forward with these links.  Happy reading.



UK
Implementing BRRD consultation paper

2014 Consultation BRRD
http://www.bankofengland.co.uk/pra/Documents/publications/cp/2014/cp1314.pdf

Dec 2015 Implementing BRRD
https://www.gov.uk/government/consultations/consultation-on-the-implementation-of-the-bank-recovery-and-resolution-directive-brrd/bank-recovery-and-resolution-directive-brrd-implementation



EU BRRD
http://www.betterregulation.com/ie/hot-topic/eu-banking-recovery-and-resolution-directive-brrd



PWC Bail In analysis
https://www.pwc.com/im/en/publications/assets/pwc_eu_bank_recovery_and_resolution_directive_triumph_or_tragedy.pdf


Italy Objects
http://www.ft.com/cms/s/2/8ad2ed98-d0a0-11e5-986a-62c79fcbcead.html


Monte Paschi's 5 Billion Bail Out
http://www.zerohedge.com/news/2016-07-31/full-details-behind-monte-paschis-%E2%82%AC5-billion-bail-out