3rd March 2011

An EU framework for crisis management

The BBA has provided the European Commission with its views on a proposed EU-wide framework for bank recovery and resolution. We welcome the Commission’s focus but raise concerns about intrusiveness.

Focusing on preventative measures to avoid problems occurring and the development of resolution powers which mirror those in the UK’s own ‘Special Resolution Regime’ is welcome. However, we are concerned by the potentially highly intrusive ‘early intervention’ powers proposed which look much like resolution tools but are intended to be exercised at a point when the firm is still a going concern. Throughout our response, we are encouraging the Commission to focus on the development of an international regime, to apply tools and measures at the group rather than local level and to resist the temptation to try and ‘over plan’.