Banking & fintech newsletter - Issue 34: Consultation on implementation of Bail-In tool launched

In order to ensure that the resolution framework and the manner in which write-down and conversion of capital instruments laid out in the Bank Recovery and Resolution Directive 2014/59 (‘‘BRRD’’) is predictable and transparent, the EBA has launched a public consultation on its draft Guidelines to Resolution Authorities on the Publication of the Write-Down and Conversion and Bail-In Exchange Mechanic. The consultation is open until 7^th September 2022.

The draft guidelines includes information which resolution authorities set-up under article 3 BRRD must make public in relation to the write-down and conversion being applied in the context of bail-in tool. As from 1^st January 2024, resolution authorities must comply with the draft guidelines in order to ensure credibility and safeguard investors’ interests.