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Crisis ManagementDuring the recent financial crisis, a number of governments had to take emergency action to stabilise banks. Without that government intervention, several banks might have failed. The fast and effective intervention by national governments avoided this and prevented serious financial meltdown. The unprecedented circumstances of the crisis justified that exceptional action. However, governments acted under national law. There is currently no EU framework for managing crises in the banking sector, and the crisis has clearly shown that the lack of an EU regime hampers the ability of governments to deal with problems in cross-border banks.
Consultation on technical details of a possible European crisis management frameworkIn early January 2011, the Services of DG Internal Market and Services invited views in response to its public consultation regarding the putting in place of an EU framework for crisis management in the financial sector. A broad range of issues was considered, from prevention and "early intervention" to bank resolution measures and financing arrangements. This consultation set out technical details of the framework outlined in the Commission's Communication of October 2010. The consultation closed on the 3 March 2011.
Communication on a new EU framework for crisis management in the financial sector (20.10.2010)The Commission's Communication sets out the main elements that will be part of the Commission's legislative proposals next year, and is the result of extensive consultations over the past months (see IP/09/1549). Beyond the immediate priority of putting in place efficient crisis management arrangements in all Member States, the Communication also includes a "roadmap" providing a longer term view of some of the major challenges which will need to be overcome in order to ensure smooth handling of crises. The new framework described in the Communication will be broad-ranging and aims to equip authorities with common and effective tools and powers to tackle bank crises at the earliest possible moment, and avoid costs for taxpayers.
Communication on bank resolution funds (26.05.2010)The European Commission has adopted the 26th of May 2010 a Communication on Bank resolution Funds that proposes that the European Union establishes a EU network of bank resolution funds to ensure that future bank failures are not at the cost of the taxpayer or destabilise the financial system. Following discussion at the forthcoming European Council, the European Commission will present these ideas at the G-20 Summit in Toronto on 26-27 June 2010. Such funds would form part of a broader framework aimed at preventing a future financial crisis and strengthening the financial system. The Commission believes that a way to achieve this is by introducing requirement for Member States to establish funds according to common rules into which banks are 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 is managed in an orderly way and does not destabilise the financial system.
Conference on Cross-border Crisis ManagementOn 19 March the European Commission hosted a high level one-day conference on the construction of a new crisis management framework in the banking sector. The Internal Market Commissioner Michel Barnier set out his ideas on how to move forwards, followed by a number of eminent speakers and panellists from different backgrounds who expressed their views about what needed to be done. The conference featured a mixture of keynote addresses and panel discussions. It was divided into three sessions:
Date: 19 March 2010
Speeches and presentations
Videos of the ConferenceSummary of the panel discussions
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| 11.04.2011 | Agenda |
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| 15.10.2010 | Agenda |
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| 14.07.2010 | Agenda |
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