Effective Resolution of Banks: Problems and Solutions

White Paper No. 19

Günter Franke,
Jan Pieter Krahnen,
Thomas von Lüpke
Research Area:
Financial Intermediation
Sep 2014
Bank Recovery and Resolution Directive (BRRD), Single Resolution Mechanism (SRM), Bail-in

This essay reviews a cornerstone of the European Banking Union project, the resolution of systemically important banks. The focus is on the inherent conflict between a possible intervention by resolution authorities, conditional on a crisis situation, and effective prevention prior to a crisis. Moreover, the paper discusses the rules for bail-in debt and conversion rules for different layers of debt. Finally, some organizational requirements to achieve effective resolution results will be analyzed.

Link to the publication
Link to Publication

Back to list