One of the lessons learned from the last financial market crisis is that it is of paramount importance to have a dedicated resolution regime for banks so that a framework is in place for tackling distressed institutions that neither uses taxpayers’ money nor endangers financial stability.

With that in mind, the Key Attributes of Effective Resolution Regimes for Financial Institutions (the "Key Attributes") developed by the Financial Stability Board (FSB) and the EU Bank Recovery and Resolution Directive (BRRD) established on the basis of these set out a new resolution regime for banks.

In Germany, the BRRD was transposed into national law by way of the Recovery and Resolution Act (Sanierungs- und Abwicklungsgesetz, or SAG), which entered into force in 2015.