EBA guidelines on treatment of shareholders in bail-in
European Banking Authority guideline clarifies the circumstances under which it is appropriate to cancel, transfer, or severely dilute shares or other instruments of ownership. Where more than one choice (cancellation, dilution or transfer) is available, the choice should be guided by the need to meet the resolution objectives. National or EU company law may affect the appropriate choice, for example shares with special voting rights might be more appropriate to cancel than to transferor a transfer shares of a listed company would avoid an interruption of listing.
Publisher:
Regional Standard-Setting Bodies
Release date:
Apr 2017
Type:
Guideline
Parent:
Bank Recovery and Resolution Directive (BRRD), Capital Requirements Regulation - CRR
Peer:
Capital Requirements Directive - CRD IV, Guidelines on Conversion Rates in Bail-in
Topics:
Recovery and resolution
Sectors:
Banking
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