This Directive (2014/59/EU) is a centre-piece of the new EU regulatory framework to ensure a sound and stable banking sector, put in place in the wake of the financial crisis, the institution said.
According to EC, the directive sets out the rules and procedures member states must adopt to mitigate and manage the distress or failure of a bank or investment firm, providing the tools and powers necessary to ensure that banks on the verge of insolvency can be restructured in order to avoid taxpayers having to pay for failing banks and to safeguard financial stability.
The deadline for the implementation of the Directive in national law was 31 December 2014, but the 11 countries have failed to fully implement these rules into their national law.