Consistent recovery and resolution of small and large banks in Europe

Analysis - June 2021 No. 18

Authors Rommer, Anne Dyrberg; Kleiner, Louise
Subject Financial stability; Financial regulation
Type Analysis
Year 2021
Published 30 June 2021
Abstract icon In 2014, the EU adopted a new framework for recovery and resolution in order to sever the tie between banks and government, so that the taxpayers no longer had to pick up the tab for failing banks. In Denmark, the framework for recovery and resolution constituted a minor innovation because Denmark already had a framework ensuring that the creditors of failing banks absorbed losses. The European framework is still evolving. The Danish experiences are useful in a European context.