European Union regulations

With the adoption of the Bank Recovery and Resolution Directive (BRRD), the European Union had taken the necessary step towards setting up resolution authorities endowed with strong powers to deal with the crisis of credit institutions and investment firms. In Hungary, this official authority was granted to the Central Bank of Hungary.

A key principle of the regulation is that the costs of crisis management should be borne by schemes (e.g., resolution funds) that finance resolution from the contributions of market participants, in order to minimize the use of taxpayers’ money. For this purpose, the Resolution Fund was established in Hungary.

The establishment of the Resolution Fund served the compliance with DIRECTIVE 2014/59/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (“BRRD”).

The official English language text of the BRRD can be downloaded here:

• Directive 2014/59/EU of the European Parliament and of the Council (BRRD)