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<p>The Banking Union project, launched in 2012 after the global financial crisis, has, as one of its fundamental cornerstones, a regulatory framework for managing banking crises. The framework is based on the principle of internal recapitalisation, so that crisis resources should be provided primarily by the troubled institution, and by the banking industry as a whole. The practical experience gained in implementing the framework led to its review in 2023, with the objective of applying resolution measures to medium-sized banks with lower capacity to tap the capital market and thus accumulate ‘bail-inable’ resources to satisfy the minimum internal recapitalisation thresholds, thus permitting them to access mutualised resolution funds. National deposit guarantee funds are placed at the centre of the reform, so that they can provide the lacking resources necessary to reach the minimum regulatory recapitalisation thresholds so the trouble bank can access the resolution funds. This is known as the so-called ‘bridge the gap’ approach. This review led to the European Commission’s proposal in April 2023, which included amendments to the Bank Recovery and Resolution Directive (Directive 2014/59, ‘BRRD’), the Deposit Guarantee Scheme Directive (Directive 2014/49, ‘DGSD’), and the Single Resolution Mechanism Regulation (Regulation 806/2014, ‘SRMR’), the so-called Crisis Management and Deposit Insurance package (CMDI). This proposal was followed by amendments to the European Commission’s original text, from both the European Parliament and the Council in mid-2024. The different options, which involve changes to the creditor hierarchy and quantification of the least-cost test, will serve as a basis for negotiations between the European Commission, the European Parliament and the Council (‘trilogues’) with a view to arriving at a final text, possibly in 2025.</p>

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Deposit Insurers in the Resolution of Medium-sized Banks: The Key to Unlock the Lock?

  • 期刊论文

  • 发表日期：

    2025年2月27日

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  • José María Fernández Real

摘要

The Banking Union project, launched in 2012 after the global financial crisis, has, as one of its fundamental cornerstones, a regulatory framework for managing banking crises. The framework is based on the principle of internal recapitalisation, so that crisis resources should be provided primarily by the troubled institution, and by the banking industry as a whole. The practical experience gained in implementing the framework led to its review in 2023, with the objective of applying resolution measures to medium-sized banks with lower capacity to tap the capital market and thus accumulate ‘bail-inable’ resources to satisfy the minimum internal recapitalisation thresholds, thus permitting them to access mutualised resolution funds. National deposit guarantee funds are placed at the centre of the reform, so that they can provide the lacking resources necessary to reach the minimum regulatory recapitalisation thresholds so the trouble bank can access the resolution funds. This is known as the so-called ‘bridge the gap’ approach. This review led to the European Commission’s proposal in April 2023, which included amendments to the Bank Recovery and Resolution Directive (Directive 2014/59, ‘BRRD’), the Deposit Guarantee Scheme Directive (Directive 2014/49, ‘DGSD’), and the Single Resolution Mechanism Regulation (Regulation 806/2014, ‘SRMR’), the so-called Crisis Management and Deposit Insurance package (CMDI). This proposal was followed by amendments to the European Commission’s original text, from both the European Parliament and the Council in mid-2024. The different options, which involve changes to the creditor hierarchy and quantification of the least-cost test, will serve as a basis for negotiations between the European Commission, the European Parliament and the Council (‘trilogues’) with a view to arriving at a final text, possibly in 2025.