EBF welcomes clarification on ESM application

21 June 2013

"First and foremost, the solution lies in effective supervision combined with efficient crisis management and reliable resolution mechanism for banks which are in trouble", said Chief Executive Guido Ravoet.

The EBF is a keen supporter of the Banking Union, of which the European Stability Mechanism (ESM) is a key element. The EBF therefore welcomes the adoption of the guidelines to use the ESM to recapitalise banks directly in future, as agreed by eurozone Ministers of Finance.

“We like the principle that there is now a clear and commonly agreed solution to recapitalise banks, which avoids burdening further the finances of countries already in deep economic difficulties", said Guido Ravoet, Chief Executive of the EBF. "But first and foremost, the solution lies in effective supervision combined with efficient crisis management and reliable resolution mechanism for banks which are in trouble.”

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