BaSAG
What is the BaSAG?
The “Federal Act on the Recoveryand Resolution of Banks” (BaSAG) came into force on 1 January 2015, thereby transposing the Directive on the restructuring and resolution of credit institutions and investment firms into Austrian law. The main aim was to relieve the burden on public finances – and thus on taxpayers – arising from the costs of bank resolution. The BaSAG stipulates, on the one hand, that banks must draw up recovery plans and, on the other hand, that the resolution authority (FMA) must draw up resolution plans. The BaSAG also provides the supervisory authority with the opportunity to intervene at an early stage and grants it additional powers of intervention as early intervention measures. For the resolution phase, the national resolution authority established for this purpose has been granted far-reaching powers and resolution tools.
Learn more about our insolvency and restructuring division. Please feel free to contact us for further information.