Commission Delegated Regulation (EU) 2016/860

In force

This text since 21 Jun 2016law://eu/reg/2016/860/art_5@2026-11-13

Contents

Article 5Exclusion on grounds of impossibility to bail-in under Article 44(3)(a) of Directive 2014/59/EU#

1.Resolution authorities may only exclude a liability or class of liabilities from the exercise of the bail-in tool where the obstacles invoked for such exercise do not allow for it to take place within a reasonable time, despite every best effort of the resolution authority.

2.With regard to paragraph 1, resolution authorities shall, in particular, satisfy the following requirements before making a determination as to the exclusion referred to therein:

(a)the obligation of the resolution authority, to provide in the resolution plan, a description of the processes for ensuring availability within an appropriate time frame of the information required for the purposes of valuation pursuant to Articles 36 and 49 of Directive 2014/59/EU;

(b)the obligation of the resolution authority to address any impediments to resolvability of the institution including the circumstances resulting in a potential exclusion which could be foreseen in the resolution planning process when those potential exclusions amount to impediments to resolvability.

Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.

Key facts

Type: Delegated regulation · Commission Delegated Regulation (EU) 2016/860
Adopted: 4 Feb 2016
In force: 21 Jun 2016
Made by: European Commission
Official: EUR-Lex 32016R0860 · ELI

Topics

aid to undertakings company in difficulties credit institution economic recovery EU financial instrument financial solvency investment company Economic and Monetary Union Economic policy

History · 1 version

21 Jun 2016Reading

Connections

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Cited by 2: Commission Delegated Regulation (EU) 2016/1401; this act

Defined terms · 2

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Direct contagion
means a situation where the direct losses of counterparties of the institution under resolution, resulting from the write-down of the liabilities of the institution, lead to the default or likely default for those counterparties in the imminent.
Indirect contagion
means a situation where the write-down or conversion of institution's liabilities causes a negative reaction by market participants that leads to a severe disruption of the financial system with potential to harm the real economy.