Current accounts at risk?
The Bank Recovery and Resolution Directive (BRRD) provides for the freezing of current accounts and limitations on withdrawals in the event that a credit institution (bank) goes into crisis
Il Bank Recovery and Resolution Directive (BRRD) is one of the latest finds on which Brussels is busily working to freeze current accounts with savingsof the European citizens and only now we understand better some of the reasons why the United Kingdom, although it had never adopted the European currency, has reluctantly decided to leave the European Union.
The novelty is, according to a document from the ECB (European Central Bank), that if a bank were to be on the verge of bankruptcy or in serious difficulties, the Bail In that until now has at least protected the small investors who did not reach the Euro 100.000 and were neither bondholders nor shareholders, could be overcome by having less apocalyptic tones of the "freezing of current accounts".
This freezing of the funds of ALL account holders, would take place in a period not exceeding five working days, limiting withdrawals at the Bank's branches, and thus preventing the current accounters from withdrawing the amount paid up to that time.
The assumption of the guarantee mechanism, is pushed by Germany, so much so that the executive director of the European Central Bank (BCE), Ms. Sabine Lautenschlaegr, in promoting this procedure, said she was amazed at how many people were so frightened.
The European Central Bank (ECB), at the request of the European Council and the European Parliament, expressed its opinion on the revision of various regulations concerning the European banking crisis, documenting it (read official document), as you can read al point 5 and proposing the modification of the Directive on bank resolutions (BRRD).
The analysts of SHADOIT BUSINESS CONSULTANCY LTD, fear that the European Union will soon be able to approve this proposal and put into the crosshairs the current accounts of European citizens, to freeze them in aid of the Banking Institutes and have elaborated a convenient solution, both for the private European citizen and for the company.