Recital 1

(1)The Union resolution framework for credit institutions and investment firms (‘institutions’) was established in the aftermath of the 2008-2009 global financial crisis and following the Key Attributes of Effective Resolution Regimes for Financial Institutions first published by the Financial Stability Board in October 2011. The Union resolution framework consists of Directive 2014/59/EU of the European Parliament and of the Council ⁴ and Regulation (EU) No 806/2014 of the European Parliament and of the Council ⁵ . Both legislative acts apply to institutions and to other entities that fall under the scope of that Directive or of that Regulation (‘entities’). The Union resolution framework aims to deal in an orderly manner with failures of institutions and entities by preserving their critical functions and avoiding threats to financial stability, and at the same time protecting depositors and public funds. In addition, the Union resolution framework is intended to foster the development of the internal market in banking by creating a harmonised regime to address cross-border crises in a coordinated way and by avoiding issues of distortions of competition and risks of unequal treatment.