This supervisory statement is relevant to Bank Recovery and Resolution Directive (BRRD) undertakings to which the Contractual Recognition Part of the PRA Rulebook applies, hereafter referred to as ‘BRRD firms’. It was finalised as part of Policy Statement 17/16 ‘The contractual recognition of bail-in: amendments to Prudential Regulation Authority rules’ following Consultation Paper 8/16 ‘The contractual recognition of bail-in: amendments to Prudential Regulation Authority rules’ (see Related Links).
The supervisory statement sets out the PRA’s expectations on BRRD firms with regard to impracticability in the context of the contractual recognition requirement and the considerations BRRD firms could take into account when determining impracticability.
Providing clarity on the PRA’s expectations in this area supports the PRA’s general objective of promoting safety and soundness of firms by reducing the adverse effect that the disorderly failure of a firm can have on the United Kingdom’s financial system.
Published on
29 June 2016
Supervisory Statement 7/16