Where: Brussels, Belgium
Topic: Economy, finance, tax and competition
Organiser: European Commission
On 10 July the European Commission is due to present a proposal for a Single Resolution Mechanism to deal with failing banks. This mechanism will complement the Single Supervisory Mechanism (SSM) (IP/12/953).
The Single Resolution Mechanism (SRM) will ensure that – not withstanding stronger supervision - if a bank subject to the Single Supervisory Mechanism faces serious difficulties, its resolution can be managed efficiently. In case of cross-border failures, it would be more efficient than a network of national resolution authorities and avoid risks of contagion.
The Single Resolution Mechanism would apply the substantive rules of bank recovery and resolution (IP/12/570) – due to be adopted shortly - in the banking union.
The Single Resolution Mechanism was announced by the Commission in the Communication on A Roadmap Towards a Banking Union (September 2012) and in the Blueprint for A Deep and Genuine Economic and Monetary Union(November 2012).
The European Council in December 2012 recognised the need to set up a Single Resolution Mechanism to accompany the Single Supervisory Mechanism in the Banking Union. In March 2013, the European Council committed to complete the Banking Union via a series of steps and confirmed that the Commission’s proposal for a Single Resolution Mechanism should be examined as a matter of priority with the intention of adopting it during the current parliamentary cycle.
The European Parliament has consistently called for greater integration in the arrangements for resolving banks, and in a Resolution adopted on 13 June 2013 urged the Commission to adopt as quickly as possible the proposal establishing the Single Resolution Mechanism.
Technical briefing and press conference at 11.30 (time to be confirmed).
Press release and MEMO available on the day.