Clarification on EBA Final Q&A 2015_2469 / Exemption from bail-in of liabilities to institutions in order to avoid risk of systemic contagion

Since Article 44(2)(e) BRRD excludes from bail-in liabilities to institutions, and Article 2(1), point (23) BRRD states that both credit institutions and investment firms qualify as ‘institutions’ under the BRRD, the exclusion under Article 44(2)(e) must be interpreted as to include also liabilities (with a maturity of less than seven days) owed to investment firms that are not part of the same group.  Disclaimer: The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.