Barnier: Presentation on Commission proposal on bank resolution fund
26 May 2010
Banks, not taxpayers, need to pay for future crises, Commissioner Barnier said. The European Commission will present specific legislative proposals in the autumn, revealing the size and contributions to these funds.
Commissioner Barnier announced that in autumn the EC will present specific legislative proposals. The size and contributions to these funds will be revealed also in autumn after having consulted all stakeholders, including the banking sector.
The tool to be use to finance the fund is still unknown; the Commission is considering several possibilities such a bank levy. The specific tool is still to be defined and it is open to the reaction of the banking sector, Barnier said. He also assured to take into account the" cumulative effects "of other proposal as the Basel on capital requirements.
He highlighted that the proposal is based on two principles:
1. Prevention is always better and cheaper than cure.
2. Ensure that Tax payers will no longer be on the front line
© European Commission
