Commission welcomes political agreement on the review of the bank crisis management and deposit insurance framework

Commission welcomes political agreement on the review of the bank crisis management and deposit insurance framework

The European Parliament and the Council have reached a political agreement on the Commission proposal to review the bank crisis management and deposit insurance framework (CMDI). This reform will better safeguard financial stability and avoid the use of taxpayer money to rescue failing banks, and is an important step towards the Banking Union.

The reform aims to enhance the ability of resolution authorities to manage the failure of small and medium-sized banks by broadening the scope of resolution to include these banks when it serves the public interest. This will enable more banks to undergo an orderly exit, such as a sale to another bank, rather than being liquidated, thereby minimizing economic disruption in the event of bank failures. The reform will also strengthen depositor protection across the EU. The agreement also acknowledges the specificities of national banking sectors while ensuring that a level playing field is maintained.

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