The provision of critical functions at global, national or regional level
The introduction of a bank resolution framework for EU banks has created the need for clear legal definitions of the main elements in resolution. This paper assesses one of these elements, namely “critical functions”, which encompasses the activities of a bank that are of significant importance for the real economy. The assessment of the regulation and implementation shows that there is room for sharpening the definition and equal application across all banks. It is questionable, however, whether regulatory intervention is necessary given the on-going work of authorities at different levels. In turn, legislative intervention will be required to align the objectives of the resolution framework and state aid. The latter currently leaves more room for public support measures, which are not necessarily in the public interest.
In-Depth Analysis
External author
Willem Pieter de Groen
About this document
Publication type
Keyword
- banking system
- BUSINESS AND COMPETITION
- business organisation
- civil law
- company in difficulties
- credit policy
- economic conditions
- economic recession
- ECONOMICS
- EU banking union
- euro area
- FINANCE
- financial institutions and credit
- financial intervention
- financial solvency
- free movement of capital
- LAW
- liquidation
- loan
- monetary economics
- monetary relations