Commenting on the ECOFIN agreement, BdB general manager Michael Kemmer said that deciding on the modalities of bail-ins was an important intermediate step that should now be followed by swift trilogue negotiations.
Translated from the German
Mr Kemmer said that it was an important step that ECOFIN had resolved the outstanding issues concerning the functioning of the bail-in resolution instrument. The trialogue negotiations should now be concluded swiftly, so that the start of the common European Banking Supervision could coincide with the launch of an EU-wide cross-border restructuring and resolution mechanism. The proposed framework ensured that in future the mechanism could react much earlier to any apparent imbalances within a financial institution.
"In the event of an emergency it will be possible to effect bank settlements across borders - and that without jeopardising the financial stability of the eurozone or the taxpayers' money. This is an important lesson learned from the financial crisis", he said. "It is crucial, particularly with the controversial provisions for bail-ins, that shareholders are aware of the conditions and obligations that they might face in case of an eventual resolution process."
He also welcomed the decision that deposits up to the deposit insurance limit of €100,000 should not be included in the bail-in considerations.
Full press release (in German)
© Bundesverband deutscher Banken
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