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The Chair of the Single Resolution Board (SRB), Dominique Laboureix, has just told us why we need the crisis management reform. Let me now give you the ECB’s perspective on the significance of the current review of the CMDI framework. Implementing the CMDI proposal will increase the EU banking sector’s resilience and make crisis management in the EU more efficient. Improving resilience will reduce the risk that a bank failure leads to contagion. The CMDI proposal aims to improve the way we resolve crisis situations at mid-sized banks. But let’s not forget that this is a coherent package which hinges on having adequate funding in resolution. I will come back to this issue later. In brief, our key objective is to maintain stability; we should not fall back on taxpayers’ funds or let contagion spread across the financial markets.
I will first look at some of the most relevant changes to the pre-resolution phase set out in the European Commission’s CMDI package. I will then focus on how the package will ensure optionality to the crisis management toolkit. Finally, I will discuss the crucial point of resolution funding, and conclude by recalling the elements that are still missing in the EU’s crisis management framework.
I am also looking forward to our panel discussion when we will hear views − from a broad range of perspectives − on the reform of the EU’s CMDI framework. ...
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