The first one is to successfully complete the set-up of the single supervisor. The operational start of the new authorities is foreseen around mid-2014. To that end, the ECB and the national authorities are working together intensely, focused on the common goal of creating an effective system. The organisational challenge, however, is great and further complexities may emerge during the implementation.
The SSM, banking union and the future of prudential policy in Europe
The establishment of a single supervisory mechanism under the ECB will help mitigate a number of threats to Europe’s financial system, writes Ignazio Angeloni. But still more needs to be done
Author: Ignazio Angeloni
Source: Central Banking Journal | 10 May 2013
Categories: Financial Stability
United Kingdom: EU Commission Sets Out Plans For Single Resolution Mechanism In Banking Union | New Single Resolution Board Proposed
EU Commission Sets Out Plans For Single Resolution Mechanism In Banking Union | New Single Resolution Board Proposed
On Wednesday 10 July, the European Commission announced its proposals to establish the Single Resolution Mechanism as part of the Banking Union.
Please click here for the text of the Commission’s announcement. The text of the proposed Regulation will be made available by the Commission “in the coming days".
- The Commission suggests the creation of a Single Resolution Board to direct resolution actions in the Banking Union, while the Commission gains sole power to trigger a resolution.
- A Single Bank Resolution Fund would be created by pooling national resolution funds.
- Balancing the need for clear and rapid decision-making in the heat of a crisis while staying within the current Treaty, and respecting legitimate national interests, will be a tricky task.
- The Commission aims to have the framework operational by 2015.
The Commission notes that EU leaders set themselves the target of agreeing the mechanism by the end of 2013, with a view to adopting the legislation by the end of the current parliamentary term in 2014, and applying the regime from January 2015 in line with the RRD.