Article 44(11) of the Bank Recovery and Resolution Directive (BRRD) provides that the European Commission is empowered to adopt a delegated act to further specify the circumstances under which exclusions from bail-in are necessary to achieve the objectives of Article 44(3) of BRRD.
Article 34(1) of the BRRD provides the possibility of applying exclusions in exceptional circumstances is limited by the principle that no shareholder or creditor may incur bigger losses in resolution that in winding up under normal insolvency proceedings.
The Commission has now adopted a Delegated Regulation supplementing the BRRD by specifying the circumstances where exclusion from the application of write-down or conversion powers is necessary under Article 44(3) of the BRRDs.
