Guidelines on treatment of liabilities in bail-in

status: Final and translated into the EU official languages

These Guidelines clarify the interrelationship between the sequence in which liabilities should be written down or converted when the bail-in power introduced by the Bank Recovery and Resolution Directive (BRRD) is used, and the hierarchy of capital instruments in the Capital Requirements Regulation (CRR). This is the first of several EBA regulatory mandates under the BRRD which aim to ensure that bail-in power is an effective way of absorbing losses and recapitalising banks in resolution and that resolution authorities and other stakeholders have a clear understanding of the terms under which it should be applied.

Press Release

Consultation Papers