Moreover, in the event that an institution does fail, the impact associated with that failure should be minimised. See here. MiFID II contains new EU-wide rules governing investment firms, credit institutions, trading venues and market structures, as well as third-country firms providing investment services or activities in the EU.
Requirements for their total loss-absorbing capacity (TLAC)3 are intended to ensure that systemically important banks have issued a sufficient amount of bailinable debt and can be resolved without recourse to taxpayer money, while maintaining their vital economic functions. Recovery and resolution planning identifies critical functions that can be ring-fenced and shielded from the negative consequences of adverse scenarios.