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 implemented the new measures within BRRDII during December 2020.
Next Steps
Banks are expected to implement the requirements.
The GFSC has set-up up a working group with industry to consider, implement and operationalise the requirements. We are also liaising directly with firms on our approach to the requirements.
Documents
| Briefing note: Banking Package Changes: BRRD II Changes | Download |
| Q & A: CRD V/ IFD/ BRRD II | Download |
| Industry Dialogue Workshop: Refresh of BRRD II | Download |
| CRDV & BRRD II derogations: Session Two | Download |
| Industry Dialogue Workshop: BRRD2: MREL Changes | Download |
Further information on the Gibraltar Deposit Guarantee Scheme can be found here.
Further information on the Investment Firm Directive and Investment Firm Regulation can be found here.
Further information on changes to the Capital Requirements Framework can be found here.