STATEMENT BY MICHEL BARNIER ON THE EUROPEAN BANK RECOVERY AND RESOLUTION FRAMEWORK PROPOSAL

On 30 March 2012, the EU Commission published a statement by Michel Barnier, European Commissioner for Internal Market and Services, on the proposed European framework for bank recovery and resolution.

The Commission is in discussions with key stakeholders to finalise the proposal.  The discussions will focus on the use of the bail-in tool, with specific issues under discussion including:

  • Conditions when a debt write-down could be triggered,
  • Scope and purpose of the tool,
  • Hierarchy of creditor claims in a debt write-down,
  • Details and rationale behind a required minimum level of liabilities eligible for write-down,
  • Legal and practical details of the implementation of a debt write-down,
  • Timing and entry into force of the tool.

 It was noted that the Commission intends to publish its proposal before the next meeting of the G20, which is scheduled to take place in Mexico from 18-19 June 2012.

 The statement is available here:

 http://ec.europa.eu/commission_2010-2014/barnier/docs/speeches/20120330/statement_en.pdf

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