1. Executive summary
These guidelines are part of a series of EBA regulatory mandates under Directive 2014/59/EU (the Bank Recovery and Resolution Directive, BRRD) which aim to ensure that the bail-in power is an effective way of absorbing losses and recapitalising banks in resolution, and that resolution authorities and other stakeholders have a clear understanding of the terms on which it should be applied. Together with the guidelines concerning the interrelationship between the BRRD sequence of writedown and conversion and CRR/CRD IV, the guidelines on the treatment of shareholders in bail-in and any regulatory technical standards on valuation in resolution, they aim to clarify how valuation information should inform the determination of the terms of bail-in.
These EBA guidelines provide guidance to resolution authorities on the setting of conversion rates of debt to equity in accordance with Article 50 of the BRRD. Und
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