BANK RECOVERY AND RESOLUTION DIRECTIVE (BRRD) IS BEING TRANSPOSED INTO NATIONAL LAW
The BRRD is embedded in the full set of rules of the European Banking Union, which also includes the Single Supervisory
Mechanism (SSM) and Single Resolution Mechanism (SRM) Regulations. The SSM and SRM, however,
apply initially only to the member states of the European Monetary Union (EMU). The BRRD is currently being
transposed into national law in the European Economic Area (EEA). In a bank recovery and resolution situation,
four tools are generally available: sale of business, bridge bank, asset separation, and bail-in. Our focus
is above all on the bail-in tool, which can only be implemented if sufficient bail-in-able capacity is available.