The Essentials of EU Banking Resolution
This course starts by introducing the concepts of bank preparation for resolution and bank resolution and the main attributes thereof (on the basis of the international principles developed by the Financial Stability Board, FSB).
Then, it presents the EU framework governing the preparation for resolution (“resolution planning” – MREL) and the resolution of credit institutions both in all Member States (under the BRRD) and in particular in the Eurozone (under the SRM Regulation), including the relevant institutional arrangements. Particular emphasis is given in this respect firstly to the analysis of the “conditions for resolution” (taking into account the resolution actions taken by the Single Resolution Board, SRB) in June 2017, and secondly to the related State aid considerations.
Finally, it also presents briefly the provisions on the Single Resolution Fund (SRF) under the SRM Regulation and the related Intergovernmental Agreement.
- Banking resolution as an element of the ‘bank safety net’
- Recovery planning – resolution planning
- Minimum requirement of eligible liabilities (MREL) – differences with the total loss absorbing capacity (TLAC)
- Early intervention
- The international regulatory framework: Key attributes of effective resolution (Financial Stability Board)
- The EU regulatory framework: BRRD and Single Resolution Mechanism Regulation (SRMR)
- The Single Resolution Board: institutional aspects
- Resolution tools (including bail-in)
- Conditions for resolution (including the ‘failing or likely to fail’ criterion)
- Precautionary recapitalization
- State aid and Single Resolution Fund (SRF) aid
- Government financial stabilization tools (GFST)
- Equivalence of third country resolution frameworks
What you will learn
- Banking resolution as one of the main elements of solvency crisis management in the banking sector
- The main elements of the international and the EU regulatory framework on resolution
- The three aspects of the EU framework: preparatory measures (including recovery and resolution planning) – early intervention – resolution tools and powers
- The functioning of the SRM and the SRF
- The four resolution tools: sale of business, bridge institution, asset separation, bail-in
- The three conditions for resolution: failing or likely to fail – no reasonable prospect for effective alternative private sector measures or supervisory action – public interest criterion
- The alternative forms of permissible State aid under the new framework
How the course will work
Total course length: between 12 and 15 hours.
The course will feature both lectures and applications to real life situations.
A certificate of attendance will be provided to all participants after the course.
Meet the instructors
Christos Gortsos is Professor of Public Economic Law at the Law School of the National and Kapodistrian University of Athens. Other positions include Visiting Professor at the European Institute of the University of Saarland; Research Partner in the program ‘Financial Market Regulation’ at the University of Zürich; and, from late 2017, Fernand Braudel Senior Fellow at the European University Institute. He also has teaching assignments at the European Institute of the University of Zürich and at the European Law Academy in Trier and is a member of the Committee on International Monetary Law of the International Law Association. His main fields of teaching, writing and research are international, EU and public monetary and financial law, central banking law, financial regulation and institutional economics.
Seraina Grünewald is assistant Professor for Financial Market Law at the Institute of Law of the University of Zurich. Previous positions include research appointments at the Institute for Financial Services of the University of Liechtenstein, the Program on International Financial Systems of the Harvard Law School, Yale Law School and Columbia Law School, as well as intern positions in the Financial Law Division of the European Central Bank and at the IMF. In 2012 she was awarded the Issekutz Prize of the Institute of Law of the University of Zurich for outstanding achievements in economic law and previously the prize for the best bar exam of the term by the Cantonal High Court of Bern.
Kristian Kjeldsen is Head of the Financial Stability unit at the Single Resolution Board. Previously, he spent 20 years at Danmarks Nationalbank, most of the time as Head of Payment Systems and as an adviser in the Financial Stability Department. Before joining the Danish central bank, he worked for three years at the European Investment Bank in the Chief Economist Office. He holds a Ph.D. from the Institute of Finance at Copenhagen Business School and has carried out research activities at the European University Institute.
A degree in social sciences (preferably in law and/or economics/finance) and an at least basic knowledge of the following is required:
- Functioning of the banking system
- Crisis management
- EU law
1750€ – Public Authorities (e.g. National Competent Authorities, Central Banks) and European Institutions*
2250€ – Private Sector
1000€ – Research assistants or Associate Professors
850€ – Students (with certificate of studies)
The course fee covers coffee and lunch breaks. Travel and hotel costs are not included.
* In case of registration of 3 participants from the same public body, the course fee is waived for one of them. To benefit from the deal:
- the names of the 3 participants have to be communicated to email@example.com before registering
- the names of other registered people from the same institution cannot be communicated. It is upon your responsibility to get in touch with your HR division
- a single debit note will be issued for the 3 participants followed by one payment
- In case a course is cancelled, registered participants will receive the full refund.
- In case a course is moved to another date, registered participants may request a voucher to attend another FBF course.
- Registered participants who cancel their participation will receive a voucher to attend another FBF course.
For more details, please contact firstname.lastname@example.org
On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.
Registered participants can access the course material using the password provided by the FBF secretariat.