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Bank Resolution: The European Regime edited by Binder, Jens-Hinrich; Singh, Dalvinder (28th July 2016)

7 Third Country Relations in the Directive Establishing a Framework for the Recovery and Resolution of Credit Institutions

Maria J Nieto

From: Bank Resolution: The European Regime

Edited By: Jens-Hinrich Binder, Dalvinder Singh

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 27 May 2020

Subject(s):
Deposit insurance schemes — Deposit protection schemes — Recovery and Resolution Plan (RRP) — Special Resolution Regime (SSR) — Regulation of banks — Derivatives — European Banking Authority (EBA)

This chapter discusses how the introduction of the Directive for the recovery and resolution of credit institutions through the EU Bank Recovery and Resolution Directive (BRRD) affects third country relations. It argues that effective resolution of internationally active institutions requires cooperation between the Union, Member States, and third country resolution authorities. The BRRD establishes that the objectives of resolution authorities are to ensure the continuity of critical functions; to avoid significant adverse effects on Financial stability, including to prevent contagion and to protect insured depositors and client relations, while minimizing the public and private costs of resolution. Cooperation with third country resolution authorities will be facilitated if their resolution regimes are also consistent with those principles; hence, the importance of international coordination.

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