The EU resolution framework is an effective tool, but there's room to improve how it works and enhance depositor protection

On 18 March 2021, Commissioner McGuinness gave a (virtual) opening speech at the high-level conference on Strengthening the EU’s Bank Crisis Management and Deposit Insurance Framework, organised by the directorate-general for financial stability, financial services and capital markets union (DG FISMA). Ms McGuinness began by recalling how the previous crisis over 10 years ago led to a major programme of reforms of the EU financial system. But, she says, the reforms did not go as far as they needed to – and adds that the COVID crisis has been a wake-up call and a reminder of the importance of a robust crisis management framework. Ms McGuinness says that experience indicates that, while the resolution framework can be a very effective tool, there is room to improve how it works. This, she says, is where the Commission’s review of the crisis management and deposit insurance framework – known as the ‘CMDI review’ – kicks in.

You can read the full speech here, or watch the whole conference