The European Banking Authority (EBA) has published a Consultation Paper on draft guidelines on the specification of measures to reduce or remove impediments to resolvability and the circumstances in which each measure may be applied under the Bank Recovery and Resolution Directive (BRRD).
Article 17 of the BRRD requires resolution authorities to take measures to reduce or remove impediments for the resolvability of a firm or a group provided that measures taken by the firm or the group in question have not already effectively reduced or removed these impediments. The measures that can be taken are set out in Article 17(5) of the BRRD. Article 17(8) requires the EBA to issue guidelines on the Article 17(5) measures and the circumstances in which they can be applied.
In the draft guidelines, the EBA sets out specifications that apply to all of the Article 17(5) measures, such as the use of the resolution authorities’ discretion and the need to consider proportionality, as well as specifications that apply to specific measures.
The deadline for responding to the Consultation Paper is 9 October 2014. The EBA is required to issue the final version of the guidelines by 3 July 2015.
