![Amending the bank resolution framework – BRRD and SRMR [EU Legislation in Progress]](https://i0.wp.com/epthinktank.eu/wp-content/uploads/2017/06/eprs-briefing-603958-amending-bank-resolution-framework-brrd-srmr-final.jpg?fit=1000%2C1000&ssl=1)
Written by Carla Stamegna (2nd edition, updated on 28.6.2019),
In May 2019, the European Parliament and the Council adopted the proposals amending the EU legislative framework on bank resolution, consisting of the Banking Recovery and Resolution Directive, and the Single Resolution Mechanism Regulation. Resolution is the restructuring of a bank which is failing or likely to fail, aiming at safeguarding continuity of the bank’s critical functions, preserving financial stability and minimising rescue costs to taxpayers. The adopted amendments incorporate into EU law the Total Loss-Absorbing Capacity standard, set at international level to improve large financial institutions’ capacity to absorb losses and recapitalise in case they are placed in resolution. The new legislative texts were published in the Official Journal on 7 June 2019, and come fully into force on 28 December 2020.
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| Proposal for a Directive of the European Parliament and of the Council amending Directive 2014/59/EU on loss-absorbing and recapitalisation capacity of credit institutions and investment firms and amending Directive 98/26/EC, Directive 2002/47/EC, Directive 2012/30/EU, Directive 2011/35/EU, Directive 2005/56/EC, Directive 2004/25/EC and Directive 2007/36/EC; Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 806/2014 as regards loss-absorbing and Recapitalisation Capacity for credit institutions and investment firms |
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| Committee responsible: | Economic and Monetary Affairs (ECON) | COM(2016) 851 COM(2016) 852 23.11.2016 2016/0361(COD) Ordinary legislative procedure (COD) (Parliament and Council on equal footing (formerly ‘co-decision’) |
| Rapporteur: | Gunnar Hökmark (EPP, Sweden) | |
| Shadow rapporteurs:
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Pedro Silva Pereira (S&D, Portugal); Syed Kamall (ECR, United Kingdom); Thierry Cornillet (ALDE, France); Martin Schirdewan (GUE/NGL, Germany); BRRD: Philippe Lamberts (Greens/EFA, Belgium); SRMR: Ernest Urtasun (Greens/EFA, Spain); Marco Valli (EFDD, Italy); Marco Zanni (ENF, Italy) |
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| Procedure completed. | Directive 2019/879 Regulation (EU) 2019/877 OJ L 150 7.6.2019 pp. 296-344 & pp. 226-252 |
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