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THE EBA AT A GLANCE

8

Developing a harmonised resolution

framework

The BRRD, which came into effect in mid 2014, required

the EBA to develop an extensive series of technical

standards and guidelines. These continue to build on

the primary legislative provisions of the directive and

establish a cohesive EU framework for dealing with any

failing banking or investment firm. As a framework it

provides the foundation for delivering common practices

across Member States and within it the EBA also seeks

to minimise divergent approaches that may emerge in

resolution authorities. The EBA strategy for an efficient

EU resolution framework is two-pronged and foresees:

(a) the provision of training, technical assistance and

other support services to authorities; and (b) the reg-

ular monitoring of how requirements are being applied

‘on the ground’ (i.e. by attending resolution colleges or

carrying out peer reviews). Where an institution does

fail, primary responsibility for dealing with it rests with

the relevant resolution authority/ies. The EBA is tasked

to monitor these cases to ensure that cross-border

aspects of resolution are working satisfactorily. In the

event of disputes arising between resolution authorities,

the EBA provides assistance to address the problem,

using its binding and non-binding mediation powers.

Correct application and breach

of EU law

The EBA also investigates alleged breaches or non-

applications of EU law, either upon request by one or

more competent authorities or EU institutions or on its

own initiative. The outcome of the EBA investigations

into alleged breaches usually consists of recommenda-

tions addressed to the competent authority concerned,

setting out the actions that must be followed to comply

with EU law.

Mediation

The EBA has a role in settling disagreements between

competent EU authorities in cross-border situations;

that is in the supervision or resolution of those institu-

tions that operate in more than one Member State. Upon

the request of the competent authorities concerned, or

on the EBA’s own initiative, the EBA will assist in reach-

ing an agreement. If this cannot be achieved the EBA

can then take binding decisions requiring that specific

actions are taken, in order to ensure compliance with

EU law.