Member states rush over BRRD deadline

Author: Ben Bschor | Published: 11 Dec 2014

The deadline to implement the Bank Recovery and Resolution Directive (BRRD) is looming: All EU member states are required to transpose the BRRD – with exemption of the bail-in tool – into local law by January 1 2015.

Yet, with less than a month to go Germany is the only country that has taken all necessary steps for transposition of the directive by deadline.

Preparations vary widely: The UK, for instance, is nearly there. Primary legislation has been released and is expected to pass parliament before year-end. But the Prudential Regulation Authority (PRA), responsible for various regulatory rules implementing the BRRD, notably around recovery and resolution planning and some of the pre-resolution powers, has said its rules won’t be available until mid-January 2015.

Several other jurisdictions announced last minute consultations on BRRD implementation. The Irish consultation, for instance, launched at the beginning of...