Overview of the New System for Bank Recovery and Resolution in the EU
The current financial crisis showed us that the legislative framework applicable in the European Union was not able to respond properly to the financial difficulties. After 2009 the European Union started to adopt reforms relating to the financial sector and although important changes have already been made, many reforms and new legislative proposals are still pending. One of these pending reforms is the legislative proposal initiated by the European Commission in June 2012, which focuses on the recovery and resolution of credit institutions. This proposal would be a major step towards a banking union by introducing strong powers for certain authorities.
Considering that the general overview of this initiative, according to my knowledge(1), has not been discussed yet, I would like to fill the gap by this paper. The objective of this paper is therefore to give an overview of the possibly coming new system of bank recovery and resolution in such a manner that in the first part of this article, we need to outline shortly the causes of the eurozone crisis together with the most important reforms adopted in order to understand the legal context in which the legislative proposal was adopted; then in the second part thereof, we need to present the key points of the directive proposal by introducing the system of the new directive with special regard to the powers established under the ‘three pillars’. In the third part of this article we are to analyse the special resolution tools established under the third pillar in more detail before concluding our findings.
 I have carried out a research on the literature published relating to this issue; however, it was limited to certain databases.