BaFin consults on MaBail-in extension

2021/07/21

The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) launched a consultation (to run until 18 August 2021) on a draft of a circular on the minimum requirements for the feasibility of a bail-in (MaBail-in), extending it to institutions and group-affiliated companies for which the resolution plan does not yet provide for resolution measures as long they are part of a resolution group or relevant third-country subsidiaries. This draft extends the MaBail-in, which so far only includes general and specific requirements for institutions and group affiliates that are designated as resolution entities in the resolution plan, to now ensure the transfer of losses within the resolution group (from subsidiaries to the resolution entity) or within the third-country group (from third-country subsidiaries established in Germany to the respective legal entity in the third country).