Europe's banks reiterated their strong support for the Banking Union and the SSM. EBF board members stressed their commitment to assist in implementing the Banking Union framework, to help overcome the current market fragmentation.
The Board of the EBF met with Vitor Constâncio, Vice President of the European Central Bank and expressed its keen interest in the upcoming comprehensive assessment the ECB will be carrying out in 2014. “This is an important exercise in which transparency towards investors will be crucial. A thorough and robust process will be essential to ensure its success”, declared Christian Clausen, President of the EBF and CEO of Nordea Group.
The EBF Board also emphasised the necessity to focus now on the bank recovery and resolution regime, which should lead to impartiality and consistency in decisions to resolve banks. “We need an effective, transparent and predictable common framework for crisis management”, stressed Clausen. “It is absolutely crucial to get the framework right. The EBF is ready and willing to engage in discussions with policy-makers to ensure maximum clarity in the definitions and rules, especially on bail-in.”
The EBF Board also warned against implementing any structural measures before in particular the new CRR/CRDIV and the Bank Recovery and Resolution Directive have entered into force, and the effects have been assessed. “The recovery and resolution plans will force many banks to reconsider their structure and possibly make adjustments. This will in most cases make banks easier to resolve, thus fostering a more resilient financial system”, concluded Clausen.
Press release
© EBF
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