On 30 April 2019, the European Commission adopted a technical evaluation report on the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (SRMR).

The report notes that so far, there is limited experience on the application of the BRRD and SRMR to failing or likely to fail banks. The case of Banco Popular (June 2017) is the only resolution carried out after entry into force of all the provisions of the SRMR.

Given that the legislation has been applied only in a very limited number of cases – a number of which concern “legacy issues”, which accumulated before and during the financial crisis – the report concludes that more time is needed to fully assess the implications of the legislation. In addition, some legislative elements were only recently amended as part of the 2016 November Banking Package, agreed on16 April 2019 – such as the provisions on Minimum Requirement for Own Funds and Eligible Liabilities (MREL) – and these still need to be fully applied. On this basis, the Commission concludes that at this stage it is premature to propose any amendments to the BRRD and SRMR.