Agreement between European Parliament and the Council on the creditor hierarchy file
During today’s trilogue meeting the European Parliament and the Council found an agreement on the Directive of the European Parliament and of the Council Directive 2014/59/EU of the European Parliament and of the Council as regards the ranking of unsecured debt instruments in insolvency hierarchy.
I welcome the legal clarity we will achieve, making the banking sector more stable and resilient to future financial crisis, European Parliaments rapporteur Gunnar Hökmark stated after a political agreement between Parliament, Council and Commission on Bank Creditor Hierarchy, says Gunnar Hökmark.
Remaining technical issues will be solved on a technical level in the next coming weeks.
The political agreement means that this legislation will enter into force in the end of last year. This means that we now can proceed with the revision of the Banking Recorvery and Resolution directive (BRRD) including the international agreements on Total Loss Absorbing Capacity in banks. The BRRD will now increase the stability of the banking sector and facilitate rapid resolutions af banks in crisis, said Hökmark.
I am happy to say that we now are strengthening the market discipline given by the BRRD, said Hökmark.