CC BY-NC-SA 2.0 Flickr / mammal
On 14 July, the Council of the EU adopted a regulation establishing a single resolution mechanism (SRM) for failing banks. This new European regulation ensures orderly resolution of failing banks without recourse to taxpayers' money. The creation of the SRM – with a central decision-making board and a single resolution fund – ensures that all resolution decisions across participating member states will be taken in a coordinated and effective way, minimising negative impacts on financial stability and reducing the dependence of banks on the creditworthiness of sovereigns. This will entail both a systematic recourse to the bail-in of shareholders and creditors and the possible recourse to a single fund fully financed by banks.
The Italian Presidency carried out supervision of technical requirements for a good start of the Bank Union.