The Commission’s proposals go in a similar direction to those of the German government. It is important to establish a standard criterion throughout Europe for who will pay into the fund and for how the money is to be spent. This is a prerequisite for the idea's success
The Association of German Banks commented as follows on the plan to build up resolution funds in member states unveiled today in Brussels by EU Internal Market Commissioner Michel Barnier:
The Association of German Banks supports the Commission's plans to introduce a harmonised European network of national resolution funds. The Commission’s proposals go in a similar direction to those of the German government. It is now important to establish a standard set of criteria throughout Europe - or even better at G20 level - for the assessment base, for who will pay into the fund and for how the money is to be spent. This is a prerequisite for the idea's success.
If this can be achieved, a fund of this kind will be able to intervene in the event of a systemic crisis and restore stability without the need to tap the state and taxpayers on an ad-hoc basis. But the money should be used not to save ailing banks, but only to help wind them up in an orderly manner. The chain of responsibility should remain the same: first the owners, followed by the creditors, the deposit guarantee scheme and only then the resolution fund.
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