The Commission has published a Delegated Regulation specifying further the circumstances where the Bank Recovery and Resolution Directive (BRRD) write-down or conversion powers should not apply. The Delegated Regulation lays down rules to be applied when a resolution authority considers excluding a liability from the application of the bail-in tool, under any of the circumstances provided for under the BRRD and clarifies when a liability can be excluded from bail-in based on:

  • the impossibility to bail-in that liability within a reasonable timeframe;
  • the need to preserve certain critical functions and core business lines;
  • the need to avoid widespread contagion; or
  • the need to avoid value destruction.

(Source: Commission Publishes Bail-In Exceptions)