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Internal Market and Services Commissioner Michel Barnier said: “Today, the European Parliament has adopted 3 key texts to complete the legislative work underpinning the banking union. Thanks to the assiduous work of the co-legislators, we have turned the idea of a Banking Union into reality in less than two years. The EU has lived up to its commitments: the banking union completes the economic and monetary union and ensures taxpayers will no longer foot the bill when banks face difficulties.
Not only does the banking union help to restore confidence in the banking sector, but it also ensures a truly European system of supervision and resolution of banks when they fail. With today's vote, we remain on track for the operational work to start later this year.
The 3 texts adopted today are interconnected.
The Bank Restructuration and Resolution directive sets new rules for all 28 Member States to put an end to the old paradigm of bank bail-outs, which cost taxpayers' hundreds of billions of euros in the crisis. For the first time, it enshrines in binding rules the principle of bail-in so that shareholders and creditors pay for banks' mistakes, not taxpayers. Any additional funds exceptionally required will come from the banking sector itself in the shape of specially set up resolution funds.
The Single Resolution Mechanism implements the BRRD in the Eurozone and any other participating Member State. The agreement is based on a strong and efficient Single Resolution Board at its centre, where the Commission and Council respective role is limited to a minimum. The SRM will allow for the timely and effective resolution of cross border and domestic banks, over a weekend if necessary. Within the Banking Union, the resolution funds will be pooled into one Single Resolution fund.
Together with the provisions on preferential treatment for depositors set out in the BRRD rules, the recast Directive on Deposit Guarantee schemes, strengthens even further the protection of depositors: with pre-funded guarantee schemes in each Member State, depositors can rest assured that whatever happens to the bank they deposit money in, their savings up to EUR 100,000 remain fully protected from any loss.
I would like to thank all MEPs involved and in particular the rapporteurs of the three texts, respectively- Mrs Elisa Ferreira, Mr Gunnar Hökmark and Mr Peter Simon – as well as the shadow rapporteurs.
Together with the regulatory reforms for the financial sector in all 28 countries (the single rule book for banks), the completed banking union creates the right conditions under which the financial sector can once again lend to the real economy, spurring economic recovery and job creation.
