Extracts from the press conference by Michel Barnier on the options for bank resolution funds
At a press conference on 26/05/2010 in Brussels, Michel Barnier, Member of the EC in charge of Internal Market and Services, outlined a European Commission's proposal to establish an EU network of bank resolution funds, to ensure that future bank failures were not at the cost of the taxpayer or destabilise the financial system.
Such funds would form part of a broader framework aimed at preventing a future financial crisis and strengthening the financial system. The Commission believed that a way to achieve this is by introducing requirement for Member States, to establish funds according to common rules, into which banks were required to pay a levy. The funds would not be used for bailing out or rescuing banks, but only to ensure that a bank's failure was managed in an orderly way and did not destabilise the financial system.