📋 Tender Overview
I welcome the publication by the European Commission today of a legislative proposal for a reform of the bank crisis management and deposit insurance CMDI framework. I would like to thank the Commission President Ursula Von der Leyen the Executive Vice-President Valdis Dombrovskis and Commissioner Mairead McGuinness for their work on this proposal.This is an important step forward in our work on completing the Banking Union. It responds to the Eurogroup agreement of last June which identified strengthening the common framework for bank crisis management and national deposit guarantee schemes as the immediate next step in our work on completing the Banking Union and outlined a number of broad elements which should underpin a strengthened CMDI framework.Recent events have reminded us that shocks in the banking system can emerge at any time. We have also seen how the reforms we undertook since the global financial crisis in implementing stringent regulatory requirements in terms of reserves liquidity buffers and capital have led to banks operating in the EU being able to better withstand shocks.A consistent and effective framework for managing banks in distress is a critical part of the Banking Union. Its role is to ensure financial stability create a level playing field and protect depositors and taxpayers through consistent burden sharing and through the industry-funded safety nets. The EU framework has been significantly reinforced over the last decade. Yet there remains room for improvement and harmonisation to build a crisis management framework suited for all types of banks operating in the EU including for small and medium-sized banks.At our next Eurogroup meeting on 28 April 2023 we will have a discussion on the Banking Union including a first political exchange on the CMDI legislative proposal in the context of the follow-up to the Eurogroup statement on the future of the Banking Union of 16 June 2022.In full respect of the work of the co-legislators which will take up negotiations on the legislative proposal I would like to highlight the importance of completing the work during this institutional cycle running until early 2024. This is a priority for the Eurogroup but more importantly it is a priority for further enhancing the continued stability and resilience of our Banking Union.
