CRD IV Directive (2013/36/EU)

EBA Updates Single Rulebook Q&As

On October 16, 2015, the European Banking Authority (EBA) updated its Q&As on the single rulebook, publishing four new questions. The single rulebook Q&As relate to the CRD IV package of reforms, namely the CRD IV Directive (2013/36/EU), the Capital Requirements Regulation (Regulation 575/2013) and the Bank Recovery and Resolution Directive (2014/59/EU).

EBA Publishes Guidance on How to Determine Whether a Firm is Failing or Likely to Fail Under the BRRD

On May 26, 2015, the European Banking Authority (EBA) published its final guidelines (EBA/GL/2015/07) on how to determine whether an institution is failing or likely to fail for the purposes of the BRRD.

Under Article 32(1) of the BRRD, the relevant authority must determine that the firm is failing or likely to fail before resolution action can be taken. The guidelines provide separate guidance for competent authorities and resolution authorities. Competent authorities should base their determination on their assessment of the firm’s viability under the supervisory review and examination process set out in the CRD IV Directive (2013/36/EU).  Resolution authorities must consider the firm’s capital and liquidity position, as well as other requirements set out in the BRRD. The guidelines will apply from January 1, 2016.