A new regime for bank crisis management

by Louise Verill & Paul Durban Overview The financial crisis has thrown into sharp relief the limited scope of resolution tools to deal with failing financial institutions in Europe. Despite the fact that bank insolvency law is an important part of the European Union (EU) regime, the EU has faced hurdles and delays over the years in agreeing on a set of common principles. However, the number of high-profile banking failures in Europe during the financial crisis has provided clear evidence of the need for more robust crisis management arrangements and a minimum harmonisation regime for the resolution of banks in the EU.