European Commission proposes amendments to BRRD and SRMR

On 23 November 2016, the European Commission published proposals for amendments to the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism Regulation (SRMR) as part of efforts to introduce Total Loss Absorbing Capacity (TLAC) into EU law. These proposals should be seen as a package with the CRD V/CRR II proposals (which include the minimum TLAC requirements).

The EC is also proposing a number of other amendments to the BRRD and SRMR. These include powers for national authorities to apply a moratorium on payments in the lead up to resolution, changes in the requirements for liability issued in third countries and steps to introduce a harmonised creditor hierarchy in the EU. The one-page analysis below outlines the proposal and what it means for firms.

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