Bank Recovery and Resolution Measures’ Restrictive Effects on Appealing Against Them

Abstract

The article is intended as a step forward from considering only the noble objectives and positive effects associated with the authorities’ bank recovery and resolution powers, for revealing also the inherent effects of these powers on the possibility of banks fighting back against the powers’ unlawful application. Specifically, while the Bank Recovery and Resolution Directive (BRRD) sets out the general rule that, under its regime, a bank should have the right to appeal against authorities’ actions, some of the measures established under the BRRD have a natural effect of greatly diminishing bank managers’ motivation to appeal or even completely eliminate any independent decision-making capabilities. This includes choices of whether to file an appeal. This article shows that the properties or outcomes connected with some recovery and resolution measures specified in the BRRD reduce banks’ right of appeal to a fiction and may leave possibilities for uncontrolled unlawful application of powers by the supervisory and resolution authorities.