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.