Publication: Working Paper Series No. 167

The frictions between Bank Resolution and Insolvency Law by Juana Pulgar Ezquerra (Universidad Complutense de Madrid) was published on 15 March 2024 in the EBI Working Paper Series No. 167.

This article highlights and summarizes the main frictions between Bank Resolution and general Insolvency Law, which are rooted in the different objectives of each legal framework and the different interests that they aim to protect. Paradoxically, despite these frictions, resolution authorities in the EU must apply the national Insolvency Law, which is still not harmonized at European level. And they must do so not only in the event of resolution but also in ex-post and ex-ante situations, with respect to key issues that are either incompletely or too broadly regulated under the BRRD (grounds for resolution, creditors’ protection and creditor hierarchy). In the absence of specific rules, this article aims to shed light on the main interpretative tensions between the rules that are applicable in resolution and the corresponding rules of insolvency.

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