The Bank Recovery and Resolution Directive (BRRD) is a European Union regulation designed to ensure that banks can be effectively managed during financial crises. It provides a framework for the recovery and resolution of failing banks, aiming to minimize the impact on taxpayers and the economy. The directive requires banks to prepare recovery plans and establishes mechanisms for orderly resolution. Under the BRRD, authorities can intervene early to stabilize a failing bank, using tools like bail-in, where creditors and shareholders absorb losses. This approach helps maintain financial stability and protects public funds, ensuring that the banking system remains resilient during economic challenges.