PYXIDA Institutional Repository
and Digital Library
Collections :

Title :Bank resolution tools
Creator :Κατσιμίχα, Πηνελόπη
Contributor :Γκόρτσος, Χρήστος (Επιβλέπων καθηγητής)
Οικονομικό Πανεπιστήμιο Αθηνών, Τμήμα Οργάνωσης και Διοίκησης Επιχειρήσεων (Degree granting institution)
Οικονομικό Πανεπιστήμιο Αθηνών, Τμήμα Μάρκετινγκ και Επικοινωνίας (Degree granting institution)
Type :Text
Extent :56p.
Language :en
Abstract :The 2008 global financial crisis spread to most of the developed economies, including those of the European Union. Despite decades of effort to build a Single Financial Market, almost all EU jurisdictions lacked proper crisis resolution mechanisms, especially with respect to the cross- border dimensions of a global crisis. This lead to a threat of widespread bank failures in EU countries and near collapse of their financial systems. In order this challenge to be confronted, resolution planning by both regulated institutions and public authorities and concepts for structural bank reform have been identified as possible solutions to ending “Too Big to Fail” and to fostering market discipline among bank owners, bank managers and investors in bank debt. Both concepts thus complement the global quest for reliable procedures and tools for bank resolution that would minimize systemic implications once large and complex financial institution have been reached the stage of insolvency. The diploma thesis examines the development of the relevant mechanisms available for bank resolution, in special consideration of the recent Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation as one part of the current regulatory activity of the EU. The Directive requires financial institutions to submit resolution planning (living wills) to the authorities and applies resolution tools, such as sale of business tool, bridge institution tool, asset separation tool and bail-in tool. This paper is deviated in four chapters. Following the present introduction, Chapter 1 provides an extended analysis of the four resolution tools, overviewing their implementation under BRRD and SRMR, the general principles and an analysis of the contribution of the Single Resolution Fund (SRF). Chapter 2 revises the European Legal Framework concerning the bank resolution, and its evolution under the decades. Particularly, it describes the Directive 2014/59/EU which established a framework for the recovery and resolution of credit institutions and investment firms and the Regulation No 806/2014, which established uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund. Chapter 3 concentrates on the global legal framework and the guidelines provided by the Basel Committee on Banking Supervision and the Financial Stability Board. In conclusion, chapter 4 provides an analytical overview of the BRRD implementation by the Greek Law 4335/2015 and describes the greek experience of the implementation of bridge institution tool in two greek banks, the Post Bank and the Proton Bank.
Subject :Bank resolution
Resolution tools
Directive 2014/59/EU
Regulation No 806/2014
Date :2016
Licence :

File: Katsimixa_2016.pdf

Type: application/pdf