Dating exchange link senior
With reference to the Bank Recovery and Resolution Directive (BRRD), the Commission proposes to modify the banking resolution instrument.
This entails first the transposition of international standards on total loss-absorbing capacity (TLAC) and the review of its European counterpart, the minimum requirement for own funds and eligible liabilities (MREL).
Here too, the amendments aim to strengthen the supervisory instruments and make them more effective, thereby boosting the resilience of the banking system.
The Commission proposals further harmonise the insolvency ranking of creditors by creating a new category of non-preferred senior bank debt.
First, the amendments implement important international regulatory standards in European legislation.
The latter, having a higher position in the creditor ranking, would therefore become safer.
Harmonising this matter serves to increase comparability and the equal treatment of investors and banks in different EU countries.
This is an issue of great importance, especially following Brexit, in preparation for which many banks which offer banking services from London using the European “passport” are taking steps to set up subsidiaries on the continent.
The Commission duly proposes the mandatory establishment on EU territory of an intermediate parent undertaking (IPU), which, for large institutions, will ensure supervision of all their activities by the SSM.Bank deposits play a central role in the payment mechanism, and thus their contribution to a well-functioning economy justifies a higher degree of protection.