On 21 June 2021, the Single Resolution Board (SRB) published its policy on how banks can notify resolution authorities when bail-in recognition clauses cannot be added to contracts under third country law.
In accordance with Article 55(2) of the Bank Recovery and Resolution Directive (BRRD), banks may determine that it is legally or otherwise impracticable to include bail-in recognition clauses in the contractual provisions governing a relevant liability, in which case they need to notify the resolution authority. The SRB has outlined its procedural expectations with regard to such notifications, the conditions and categories for impracticability, as well as the process by which resolution authorities may require banks to nevertheless include such clauses following the receipt of the notification.