Bank Recovery and Resolution Directive

On 7 June 2019, the European Union published a number of changes to the recovery and resolution of banks following the adoption of Bank Recovery and Resolution Directive II and Single Resolution Mechanism Regulation II.  

Main changes included within BRRDII

  • A new moratorium power for the resolution authority. Published the Total Loss-absorbing Capacity (TLAC). Revised Minimum Requirement for own funds and Eligible Liabilities (MREL). Harmonised rules for the insolvency ranking of unsecured debt instruments especially with regard to ensuring a credible bail-in regime.

Gibraltar will be required to implement the new measures within BRRDII by December 2020.

Next Steps

Banks are expected to familiarise themselves with the requirements.  

The GFSC will set-up up a working group with industry to consider, implement andoperationalise the requirements as well as the derogations.  

We will be issuing further information as we develop our approach to the requirements.

Documents

Briefing note: Banking Package Changes: BRRD II Changes Download
Q & A: CRD V/ IFD/ BRRD II Download

Further information on the Gibraltar Deposit Guarantee Scheme can be found here