EU's Banking Union

1st January 2016: Single Resolution Mechanism comes into effect

 

EU’s Banking Union: Establishing confidence in banks in support of EU economy growth; preventing global economic crises

 

ECB is now single responsible party for resolving bank problems via EU bank common fund.

 

Deposits up to €100.000 are now guaranteed by the ECB via the EU bank common fund. Measure that prevents panic mass withdrawals

 

Banking Union Current Mechanisms: Single Supervisory Mechanism (SSM) and Single Resolution Mechanism (SRM)

 

After extensive bank stress tests* and comprehensive bank assessment Single Resolution Mechanism comes into effect as of 1st Jan.

 

(*balance sheets of the banks covered by its Comprehensive Assessment of 2014 sufficiently resilient, even under significant economic and financial stress)

 

Current “patchwork of national resolution authorities” replaced by a Single resolution mechanism. One supervisor prevents from getting in trouble – one resolves trouble via common fund generated by EU banks (€ 55 billion); taxpayers no longer burdened for banks problems.

 

Above information from link below and associated links.

 

https://twitter.com/EU_Commission/status/682723244898684928

2016-01-01

Single Resolution Mechanism to come into effect for the #BankingUnion> europa.eu/rapid/press-re… @JHillEU #SRM #SRB pic.twitter.com/K9DEedCFbz

 

Link to video is here

 
 
 
 
 
 
2016-01-01

Great start of a European year. #BankingUnion takes shape, commitment to #Ukraine honoured. europa.eu/rapid/press-re… trade.ec.europa.eu/doclib/press/i