Structural and Legal Aspects of Single Resolution Mechanism in EU

Abstract

In this article the authors examine the main features and particular elements of the mechanism to increase stability of credit institutions in the European Union. The world economic and financial crisis 2008-2010 clearly revealed that because of instability in financial markets separate banking and financial organisations as well as the whole economy are affected. Such state of things couldn't suit the EU and European Central Bank authorities so in 2012 they decided to develop mechanisms allowing to maintain financial stability of banks without spending public money. These mechanisms were laid down in the Banking Recovery and Resolution Directive (BRRD) 2014, which became one of the most important elements of the European Banking Union - new chain in the framework of European integration.