The European Society for Banking and Financial Law (AEDBF) and the Institute for Law and Finance (ILF) at the Goethe University Frankfurt (www.ilf-frankfurt.de) organized a Conference on Resolution Mechanisms with a special focus on Bail in – its concept, scope and practical challenges, which was held on 18 September 2014 in the House of Finance, Goethe-Universitat, Frankfurt am Main.
In July 2014, the Directive establishing a framework for recovery and resolution of credit institutions (BRRD) has come into force in the EU. As part of the BRRD, several resolution tools are introduced, amongst which is a bail-in mechanism. The bail in will allow resolution authorities to apply debt to equity swaps to banks which are otherwise expected to fail. However, the scope, the practical application and its implications still are subject to many questions.
The event has brought together practitioners, representatives from authorities, academics and bankers being experts in this field and was attended by over 90 participants, who discussed with the panelists the above subjects of great interest.