On 27 May 2021, the European Banking Authority (EBA) published a report on the application of early intervention measures (EIMs) under the Bank Recovery and Resolution Directive (BRRD).
The report presents the results of a survey on the application of EIMs that the EBA conducted among Member State competent authorities in 2019. The report also focuses on the key challenges faced by supervisors in the application of the current regulatory framework on EIMs and various options for addressing them.
In the report the EBA observes supervisory consensus on the need to eliminate existing overlaps between EIMs and other supervisory powers, as well as to remove the formal sequencing of EIMs specified in Articles 27-29 of the BRRD. In addition, the EBA observes that Member State competent authorities support the importance of amending Article 27(1) of the BRRD that includes an example of a quantitative early intervention trigger. For early intervention triggers specified in regulatory technical standards, the EBA will conduct further work and amend its current guidelines on the EI triggers upon finalisation of the current review of the BRRD.