Bank sustainability and deposit protection: Have your say via a Commission consultation
Daily News 26/01/2021
Source: European Commission Spokesperson's Service
The European Commission has launched today a targeted consultation on the revision of the EU's crisis management and deposit insurance framework. The results of this consultation will feed into the Commission's work to make this framework more coherent and robust.
The consultation focuses on three EU legislative texts: the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism Regulation (SRMR), and the Deposit Guarantee Schemes Directive (DGSD). The main purpose of the review is to: (1) assess how the current crisis management and depositor insurance framework works, (2) find ways to make the framework more proportionate, efficient and consistent in handling the resolution or liquidation of any bank in the EU, including by securing appropriate funding within and outside the Banking Union and, (3) improve the synergies between the crisis management and depositor protection, including by taking steps to complete the Banking Union.
Mairead McGuinness, Commissioner for financial services, financial stability and Capital Markets Union, said: Since the last financial crisis, the EU has put in place robust rules to address possible bank failures and improve the protection of depositors. But that does not mean that our framework cannot be improved. This targeted consultation aims to make our rules more efficient, proportionate and consistent, while ensuring that we continue to be fully equipped to protect taxpayers and maintain financial stability.
The text is available online and you can submit feedback for 12 weeks.