Directive 2014/59/EU (Bank Recovery and Resolution Directive)

Directive 2014/59/EU, known as the Bank Recovery and Resolution Directive (BRRD), establishes a framework for managing banks facing financial distress in the European Union. Its goal is to prevent bank failures from destabilizing the financial system and to protect taxpayers from costs. It requires banks to have recovery plans and resolution strategies, so in crisis, authorities can step in and restructure or wind down a failing bank in an orderly way. This minimizes disruptions to the economy while ensuring bank stability and safeguarding depositors and taxpayers.