• approves bill on Eurozone bank failure agency
  • approves Deposit Guarantee Schemes bill
  • approves bank recovery and resolution directive

BBG reporting

It’s taken a while and there’s more to do but hey, the Eurozone wasn’t built in a day.

In order to increase the stability of the financial system, Europe is in the process of creating a Banking Union. The Banking Union consists of four pillars: one set of rules (the Single Rule Book), one European supervisor (the Single Supervisory Mechanism SSM), one framework for recovery and resolution of banks (the Single Resolution Mechanism–SRM) and one harmonised European Deposit Guarantee Scheme (DGS).

The Single Resolution Mechanism (SRM) is a necessary next step for completing the Banking Union. A resolution mechanism at the European level supplementary to the single supervision by the ECB is a necessity to increase the stability of the European financial system

All clear now ?!