Creditor Priority in European Bank Insolvency Law: Financial Stability and the Hierarchy of Claims

This book is the first comprehensive treatment of creditor priority in European bank insolvency law. It provides a systematic and thorough account of the Bank Recovery and Resolution Directive and other EU legislation that governs creditor priority, and compares it with creditor priority in English, German, and Norwegian general insolvency law. It also examines the assumptions that underlie these developments and discusses how this area of law could evolve in the future.

Format: Hardback
Length: 280 pages
Publication date: 23 February 2023
Publisher: Bloomsbury Publishing PLC

This comprehensive book delves into the intricate realm of creditor priority in European bank insolvency law, offering a thorough exploration of the subject matter. In the aftermath of the global financial crisis, EU law has mandated the establishment of bank-specific insolvency frameworks within Member States. The concept of creditor priority, which determines the order in which different creditors incur losses in the event of a bank failure, stands out as a crucial aspect of these frameworks.

The bank-specific creditor priority framework is designed to strike a balance between ensuring financial stability and facilitating the orderly resolution of banks. It aims to prevent disruptions to the broader financial system and provide a framework that allows banks to enter insolvency proceedings without jeopardizing their viability.

The book provides a detailed and systematic account of the Bank Recovery and Resolution Directive (BRRD) and other relevant EU legislation that governs creditor priority in bank resolution and liquidation proceedings. It examines the interplay between these directives and national law, highlighting the differences and similarities in creditor priority across different jurisdictions.

The framework is analyzed from various perspectives, including comparisons with creditor priority in English, German, and Norwegian general insolvency law. This comparative analysis sheds light on the unique features and challenges of each legal system and provides valuable insights into the evolution of creditor priority in Europe.

Furthermore, the book places the evolution of the creditor priority framework within the broader context of post-crisis shifts in bank regulation. It critically examines the assumptions and motivations behind these developments, raising important questions about the effectiveness and fairness of the current system.

The book concludes by discussing potential future developments in this area of law. It explores potential reforms and adjustments that could be made to improve the efficiency and effectiveness of bank resolution processes while ensuring the protection of creditors' interests.

In summary, this book is a valuable resource for scholars, practitioners, and policymakers interested in understanding creditor priority in European bank insolvency law. It provides a comprehensive and systematic analysis of the relevant legal frameworks, compares creditor priority across different jurisdictions, and critically examines the assumptions and developments that have shaped this area of law. Through its insightful and thought-provoking discussions, the book offers valuable insights into the future of creditor priority in European bank insolvency law.

Weight: 570g
Dimension: 164 x 241 x 22 (mm)
ISBN-13: 9781509953653