Member States must ensure resolution authorities have all powers necessary to apply resolution tools to institutions and specified entities that meet resolution conditions. Powers include requiring information (including on‑site inspections); taking control and exercising ownership rights; transferring shares, assets or liabilities (with transferee consent); reducing or converting bail‑inable liabilities to zero or into equity; cancelling debt instruments; reducing or cancelling equity; requiring new capital issuance; amending maturities or interest (including temporary suspension); closing out financial and derivatives contracts; removing or replacing management; and requiring expedited assessment of acquirers.

Reductions or conversions affecting liabilities of uncertain timing or amount take effect once those liabilities are conclusively determined. Resolution powers must be exercisable without approvals, consents, prior notices or filings that would otherwise apply under national law or contract, and regardless of transfer restrictions, subject to Articles 81 and 83 and Union State aid notification rules. Equivalent powers and equivalent safeguards must apply to entities with different legal forms, protecting shareholders, creditors and counterparties.