Belgium is the only EU country that has still not finalised transposition of the Bank Recovery and Resolution Directive (BRRD 2014/59) on the recovery and restructuring of banking groups. Although the country is now the subject of an infringement procedure for, it is expected to finalise transposition by November.
The BRRD provides a framework for the national resolution and bank restructuring systems. These rules have been applicable since January 2015 and make it obligatory for banks to keep ex ante plans up to speed, as well as internal bail in rules, since January 2016, which provide a list of a bank's shareholders and creditors, which would be made available in the event of bankruptcy. This directive forms the basis of the "resolution" section, the second pillar of banking union in the eurozone.
This slight delay is not in itself expected to impede plans to begin work on creating a backstop for the Single Resolution Fund, the financial arm of the resolution section in banking union.
In Luxembourg on Tuesday 11 October, the Ecofin Council will provide an update on banking union implementation. In July, Ecofin decided to move forward on this question as soon as the BRRD is applied in full (see EUROPE 11575). This decision is welcomed by France, which has had to confront a total rejection by Germany on moving towards finalisation of banking union by way of setting up a single bank deposit guarantee system (see EUROPE 11629). (Original version in French by Mathieu Bion)