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Banks: new rules for crisis management and deposit insurance

|Regulation
04 May 2023

Commissioner Mairead McGuinness- Photo credit: European Union, 2023 - EC - Audiovisual ServiceThe European Commission has proposed a strengthened framework for crisis management, with a focus on small and medium-sized banks, which aims to avoid the use of public money to bail out institutions.

The reform adopted by the European Commission on April 18 updates the current EU framework for bank crisis management and deposit insurance (CMDI framework) to "ensure the smooth exit from the market of any bank, regardless of its size or business model", explained Financial Stability, Financial Services and Capital Markets Union Commissioner Mairead McGuinness.

The package focuses particularly on small institutions, whose crises have in some cases been addressed using taxpayer resources rather than the bank's mandatory internal resources or industry-funded private safety nets (the Deposit Guarantee Schemes and resolution funds).

The call to complete the Banking Union, focusing in particular on the frame

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