REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the application and review of Directive 2014/59/EU (Bank Recovery and Resolution Directive) and Regulation 806/2014 (Single Resolution Mechanism Regulation)
1. The document is a report from the EU Commission to the European Parliament and the Council on the application and review of the EU Bank Recovery and resolution Directive (BRRD) (2014/59/EU) and the Single Resolution Mechanism Regulation (SRMR) (806/2014).
2. The BRRD and SRMR were introduced in 2014 to serve as a minimum EU harmonised legal framework applicable in case of bank crises. The BRRD and SRMR established the principle that when a bank is failing or likely to fail, the resolution authority may conclude that there is a public interest in putting the bank under resolution rather than applying insolvency under national law. The framework ensures that shareholders and creditors effectively support losses and established a number of resolution tools for the authorities to deal with banks in resolution.
3. Article 129 of the BRRD and Article 94 of the SRMR require the Commission to review the application of the resolution framework and submit a report to the Parliament and the Council. This report fulfils that obligation.