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Bornemann, Alexander --- "Germany" [2015] ELECD 1257; in Haentjens, Matthias; Wessels, Bob (eds), "Research Handbook on Crisis Management in the Banking Sector" (Edward Elgar Publishing, 2015) 452

Book Title: Research Handbook on Crisis Management in the Banking Sector

Editor(s): Haentjens, Matthias; Wessels, Bob

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783474226

Section: Chapter 20

Section Title: Germany

Author(s): Bornemann, Alexander

Number of pages: 44

Abstract/Description:

This chapter outlines the development of the legal, regulatory and institutional framework that governs the treatment of failing banks in Germany. Based on a description of the pre-crisis position it provides an overview of the stabilization measures put in place during the crisis years. The stabilization framework was replaced in 2011 by a resolution regime that relied on administrative powers to effectuate the transfer of systemically important functions in order to insulate such functions from the adverse effects of a subsequent failure of the affected institution. Resolution finance was to be provided by an industry-financed Restructuring Fund. The chapter closes with a description of the early stages of the process to implement the Bank Recovery and Resolution Directive (BRRD) and to adopt it to the Single Resolution Mechanism (SRM).