Regulatory Alerts2016-11-07
Added · Updated
Classification of certain liabilities of CRR institutions under insolvency law
German financial authorities amended section 46f of the Banking Act to establish a priority insolvency ranking for specific debt instruments issued by CRR institutions, effective 1 January 2017. The amendment grants priority treatment to non-debt instrument claims while explicitly defining tradable debt instruments, money market instruments, and structured financial products subject to specific bail-in cascades. By clarifying these classifications, the rule streamlines resolution proceedings and mitigates contagion risks through predictable loss allocation for shareholders and creditors.
More like this from BAFIN
We email you every new BAFIN publication the day it's published.
Topics
Share