Articles 39, 42 and 65 of the Bank Recovery and Resolution Directive (BRRD) mandate the European Banking Authority (EBA) to promote convergence of supervisory and resolution practices on the effectiveness of the sale of business tool, on the conditions for applying the asset separation tool and on the power to require the provision of services following a transfer under resolution.
The EBA has now published draft guidelines covering:
- the sale of business tool;
- the asset separation tool; and
- the necessary services.
The draft guidelines on the sale of business tool and the asset separation tool both relate to the implementation of resolution tools against constraints stemming from the EU competition and transparency rules in relation to state aid. The draft guideline on the sale of business tool specify when authorities may deviate from certain marketing requirements for the sale of the business of an institution under resolution. The draft guidelines on the asset separation tool give guidance on assets that may be transferred under the asset separation tool. The draft guidelines on necessary services define a minimum list of necessary ‘critical’ services that the resolution authority may require from the institution under resolution (i.e. the purchaser after a sale of business, a bridge bank or the transferee after a transfer of assets).
The deadline for comments on the draft guidelines is 22 December 2014.
View EBA consults on the implementation of resolution tools, 24 September 2014