EIM Financial - March 2014

08 April 2014

EP negotiators reached a deal with their Member State counterparts on the SRM to deal with failing banks, ensuring that the system cannot become a hostage to political power games, and can deliver swift and credible decisions.

• The European Parliament scored a major victory for the people of Europe by forcing changes to the SRM that should enable it to resolve major banks quickly.

• Omnibus II went through a vote in the EP’s Plenary but there are still many questions about how the detail will be filled in – by barely 18 months to go.

• Securitisation is being strongly advocated by the ECB as part of the answer to banks’ de-leveraging and starving the economy of new credit.

• The EP adopted a non-binding report with recommendations on the European System of Financial Supervision. The report calls for greater efficiency and more power for ESAs, with a view to ending the power struggle with national authorities, which it says undermines EU financial supervision.

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© Graham Bishop