8 International and European Regulatory Developments on Bank Resolution

Subject(s):

Deposit insurance schemes — Deposit protection schemes

This chapter sets out the international standards for effective bank resolution regimes, as well as the Bank Recovery and Resolution Directive, which establishes a European framework for the recovery and resolution of banks and large investment firms. Other relevant European regulatory developments are also examined, including the European Commission state aid rules, the Single Resolution Mechanism Regulation, and the European Commission proposal for structural reforms in relation to banking groups. It concludes that although only a few jurisdictions have resolution regimes in place that are fully, or almost fully, aligned with the Financial Stability Board standards, the work undertaken in connection with the design and implementation of recovery and resolution planning requirements by all global systemically important banks represents a major regulatory success.