Recovery and resolution framework for credit institutions and investment firms

This procedure establishes a common framework for the recovery and resolution of failing banks and investment firms. It aims to prevent chaotic bankruptcies that could trigger financial crises, ensuring that failing institutions can be managed or wound down without risking overall financial stability or requiring taxpayer-funded bailouts.

This affects credit institutions, investment firms, and financial supervisors. It introduces stricter requirements for resolution planning and grants authorities the power to intervene in failing banks to protect depositors and the wider economy.