Modern Economy | 2021
Recovery and Resolution Regimes in the Banking Union
Abstract
This paper explores the implications of European Union \n(EU) legal regulations on approaches to tackling crisis situations in the \nfinancial sector. It explains the role and mechanisms of EU institutions in the \nprocess of monitoring and recovery of strategically important financial \nentities inside banking union at the EU level as well as of central bank \nmembers of the countries of the banking union. The purpose of the paper is to \nexamine the compliance of EU regulations with national legislation in order to \nachieve preventive conditions of possible future crises and to protect national \neconomies and the economy of the entire EU in context of the spillover effect and risks arising from the \nneed of banks recovery due to realized losses of the same. The results evince \nthe implementation of EU directives in the national legislation \ncomprehensively, but practice demonstrated that the implementation of the same \nones resulted in additional problems that require further EU institutions \naction and, in addition, different interpretations, i.e. evaluation of \ndirectives such as so-called “public interest”, results in discrepancy of \napproaches in managing open crisis situations.