Translation of "Insolvency regime" in German

Should there be a separate and self contained insolvency regime for cross-border banks?

Furthermore, an insolvency regime for states has to be introduced.

The restrictions imposed by this Article shall only apply to payments that result in a reduction of Common Equity Tier 1 capital or in a reduction of profits, and where a suspension of payment or failure to pay does not constitute an event of default or a condition for the commencement of proceedings under the insolvency regime applicable to the institution.

However, the Commission recognises that it would be difficult to establish an EU integrated resolution model for cross-border banking groups in the absence of a harmonised insolvency regime and of a Single European Supervisory authority for those entities.

A modern insolvency regime is key to facilitating both the orderly market exit of inefficient companies and the restructuring of viable companies.

Consideration is also given to whether a separate and self-contained insolvency regime for cross-border banking groups, replacing national regimes is necessary to enable an integrated reorganisation or winding up of a cross-border group.

Such a project might take the form of a separate and self-contained insolvency regime that would be available, and would replace the otherwise applicable national regimes, for the reorganisation and winding up of cross-border banking groups in the EU.

Moreover, it is necessary to establish a sovereign insolvency regime in order to credibly exclude a (further) bail-out.

Differences in insolvency regimes present a long standing barrier to the development of capital markets in the EU.

In a more indirect way, a general regulatory push that increased the availability of projects suitable for long-term-investment and harmonized local insolvency regimes could also have a positive effect.

For example, harmonizing insolvency regimes across the continent and reducing tax incentives that favor debt over equity, while entirely logical, strike at the heart of member states' remaining sovereignty, and thus will be extremely difficult to push forward.

The Commission is also conducting a benchmarking review of loan enforcement (including insolvency) regimes to establish a detailed and reliable picture of the outcomes that banks experience when faced with defaulting loans in terms of delays, costs and value-recovery.

The Commission will examine the need for further harmonisation of bank insolvency regimes, with the possible aim of resolving and liquidating banks under of the same procedural and substantive insolvency rules.

Diverse and sometimes inadequate insolvency regimes in the EU contribute to delaying the reduction of private sector debt, holding back investment.

In the context of the European semester the Commission will also call for increased attention from Member States to settle NPLs, including by upgrading insolvency regimes towards best practices.

However, more needs to be done in the short-term to reduce high private debt (for instance, by introducing or improving corporate and personal insolvency regimes), prepare banks for new capital requirements and stress tests and ease companies’ access to finance.

Stakeholders consider that the harmonisation of European insolvency regimes would substantially reduce barriers to cross-border investment and contribute to the smooth functioning of the internal market.

If similar measures were to be developed for use in insolvency proceedings for cross-border banking groups, the fact of different insolvency regimes - with different substantive rules on, for example, priority and avoidance powers – would need to be addressed.

Creditors may hesitate to offer more cross-border credits because they do not have sufficient knowledge about the applicable personal insolvency regimes in other Member States (where these regimes exist).