This Directive supplies an extensive glossary for the resolution framework. It defines core entities and concepts including “resolution”, credit institutions, investment firms, financial institutions, subsidiaries (including material subsidiaries), parent undertakings, consolidated basis, institutional protection schemes, financial and mixed holding companies, branches, groups and cross‑border groups, management bodies and senior management, recovery and group recovery plans, resolution authorities, competent authorities and competent ministries, and resolution objectives, tools and powers.

It further defines procedural and operational constructs: resolution action, resolution plan, group resolution and group resolution plan, resolution colleges, normal insolvency proceedings, asset separation tools and asset management vehicles, sale‑of‑business, bridge institutions, bail‑in tools, write‑down and conversion powers, eligible and bail‑inable liabilities, own funds categories, depositor and investor terms, financial contracts, netting, set‑off, crisis prevention and management measures, and related technical terms. The Commission is empowered to adopt delegated acts to specify criteria for “critical functions” and “core business lines”.