Skip to main content
European Commission logo
en
Business, Economy, Euro
Finance

Winding-up of credit institutions

A single bankruptcy procedure can be applied to credit institutions in all EU countries.

What the EU is doing and why

When EU credit institutions (usually banks) with branches in multiple EU countries fail and go through bankruptcy, certain principles defined in Directive 2001/24/EC on the reorganisation and winding up of credit institutions ensure that a single bankruptcy procedure can be applied across all countries involved.

The directive establishes that the laws of the EU country where the credit institution has its registered office (the 'home country') should be followed in bankruptcy and winding-up proceedings.

It requires that creditors be informed of bankruptcy proceedings and reorganisation measures. It also clarifies the impact of bankruptcy proceedings in relation to contracts and certain legal rights.

Directive 2001/24/EC only applies to to credit institutions with branches in other EU countries and does not apply to banking groups.

Policy making timeline

  1. 5 May 2001
    Entry into force - Winding up of credit institutions

    Entry into force of the Winding Up of Credit Institutions Directive.

  2. 27 March 2017
    Study - Asset transferability

    Study on the feasibility of reducing obstacles to the transfer of assets within a cross border banking group during a financial crisis.

  3. 14 November 2016
    Report - Asset transferability

    Commission services' report on asset transferability.

Relevant legislation