- Question ID
-
2016_2669
- Legal act
- Directive 2014/59/EU (BRRD)
- Topic
- Other topics
- Article
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Article 55 Directive 2014/59/EU
- Paragraph
-
1
- Subparagraph
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first
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
-
Not applicable
- Type of submitter
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Competent authority
- Subject matter
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Contractual recognition of bail-in
- Question
-
Does Article 55 BRRD apply also to agreements (such as guarantees or counter-guarantees) that create contingent liabilities, which, as such, are not subject to bail-in unless and until the contingency occurs?
- Background on the question
-
Article 55 BRRD applies in relation to certain 1cagreements creating [a] liability 1d governed by third-country law. While the BRRD does not provide a definition of 1cliability 1d, Article 55 excludes from its scope of application agreements creating liabilities that are not subject to bail-in. There is therefore scope to exclude certain forms of liability from the requirement to include the contractual term, including contingent liabilities, given that these are not subject to bail-in unless and until the contingency occurs.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.
If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.
For further information please refer to the press release and the updated Q&A page.
- Status
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Rejected question