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.


Single Resolution Mechanism to come into effect for the #BankingUnion>… @JHillEU #SRM #SRB


Link to video is here


Great start of a European year. #BankingUnion takes shape, commitment to #Ukraine honoured.…