Bank Recovery and Resolution Directive (BRRD)

The Bank Recovery and Resolution Directive (BRRD) is a set of European rules designed to help prevent large banks from causing financial instability if they face trouble. It requires banks to develop plans for recovering from crises and gives authorities tools to manage or close a failing bank in an organized way. This aims to protect taxpayers, maintain financial stability, and ensure banks can handle financial stress without causing widespread economic issues. Essentially, BRRD helps keep the financial system safe by planning ahead for potential bank failures.