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Winding-up of credit institutions

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


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  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.



14 NOVEMBER 2016
Document: Commission services' report on asset transferability