Commenting on the widely-discussed idea of restricting the SRM to large European banks, General Manager Michael Kemmer said: "There must be no two-class system of regulation".
"As the European Commission correctly points out when explaining its proposal, the crisis has shown that a resolution framework is needed at European level not only for large international banks. The same business, the same risks and all market participants must be subject not only to the same supervisory rules but also to the same resolution rules and these must be applied uniformly.
Should the planned Single Bank Resolution Fund be replaced by a network of national resolution funds, it must be ensured that this network cannot then be misused to finance legacy debt and cleaning-up measures at national level in the wake of the 2008 crisis. Legacy debt incurred under national responsibility should on no account be shifted elsewhere. Member states are, and remain, responsible for such debt."
Press release
© Bundesverband deutscher Banken
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article