The Introduction of the Holders of Non-Preferred Unsecured Senior Debt as a New Additional Class of Creditors into the Bank Insolvency Act Cover Image
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ВЪВЕЖДАНЕТО НА ПРИТЕЖАТЕЛИТЕ НА НЕПРИВИЛЕГИРОВАН НЕОБЕЗПЕЧЕН ПЪРВОСТЕПЕНЕН ДЪЛГ КАТО НОВ ДОПЪЛНИТЕЛЕН КЛАС КРЕДИТОРИ В ЗАКОНА ЗА БАНКОВАТА НЕСЪСТОЯТЕЛНОСТ
The Introduction of the Holders of Non-Preferred Unsecured Senior Debt as a New Additional Class of Creditors into the Bank Insolvency Act

Author(s): Rashko Stoyanov
Subject(s): Law, Constitution, Jurisprudence, International Law
Published by: Институт за държавата и правото - Българска академия на науките
Keywords: Bank resolution; MREL; no creditor worse-off

Summary/Abstract: The introduction of a specific MREL for each financial institution falling within the scope of the resolution legal framework proved problematic to maintain and jeopardized the effective implementation of the resolution tools by breaching the no creditor worseoff principle. The European Union responded to the problem by adopting Directive (EU) 2017/2399.