Extracts from the press conference by Michel Barnier on the proposal for a Single Resolution Mechanism for the Banking Union
Type: Summary of press conference
Brussels - EC/Berlaymont
On 10 July 2013, Michel Barnier, Member of the EC in charge of Internal Market and Services, presented in Brussels the proposal for a Single Resolution Mechanism for the Banking Union, just adopted by the European Commission. The European Commission proposed a Single Resolution Mechanism (SRM) for the Banking Union. The mechanism would complement the Single Supervisory Mechanism (SSM) which, once operational in late 2014, will see the European Central Bank (ECB) directly supervise banks in the euro area and in other Member States which decide to join the Banking Union.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior view of the Berlaymont building in Brussels, Belgium
||Arrival of Michel Barnier, Member of the EC in charge of Internal Market and Services, to the press conference titled "Proposal for a Single Resolution Mechanism for the Banking Union"
||Soundbite by Michel Barnier (in FRENCH) saying that currently the euro area and those who are going to joint it, they are putting an end to a dual fragmentation between the supervision authorities and the resolution authorities. There were like co-existing. And there is an obvious interdependence in the euro area between States and banking institutions. In the Dexia and Fortis cases just to mention them as an example, they saw that they didn't have the necessary decision process to resolve a bank and they are going to put an end to that fragmentation. They are going to equip themselves to provide in advance, to decide together and resolve together.
||Cutaway of photographer and cameraman
||Soundbite by Michel Barnier (in FRENCH) saying that they put on the table of Heads of States, governments and MEP's, the tools for an organised prevention, a capital requirement fund, a single supervision and now they are putting on the table the tools and means to organise a well-prepared resolution and repair.
||Cutaway of a photographer
||Soundbite by Michel Barnier (in FRENCH) saying that the proposal consists of a Resolution board, set up as an agency with the necessary expertise. They initially imagined 300 people to do this job. It is not many when looking as an example at the US where 7500 people are employed there. This board with a President and a Deputy, will bring together the national resolution authorities, in particular those concerned by a bank with cross-border activities and then, they will ask for validating the resolution plans prepared by the banks of the euro area, so they will have to be ready for resolution. All of this is in the directive. And when a resolution has to be implemented, it is this board which will prepare all the decisions. They will do this on the basis of an alert or request from the supervisor, the European Central Bank (ECB).
||Cutaway of the audience