Determination of exhaustion of supervisory action by the resolution authority

Article 82(2) of Directive 2014/59/EU (BRRD) requires that the decision of the resolution authority contains the reasons for the determination that the institution meets the conditions for resolution. This implies the need for a consultation with a competent authority in order to determine there is no reasonable prospect for alternative private sector measures or supervisory action to prevent failure of the institution within a reasonable timeframe. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.