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Completing the Banking Union (Communication)

Information memo: Completing the Banking Union (Communication)

Key points:


  • welcomes the new set of measures proposed by the European Commission to complete the Economic and Monetary Union (EMU) and move towards an optimal monetary zone;
  • supports the various proposed goals for reinforcing the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM);
  • welcomes that the present communication provides scope for a broader discussion and for a phased approach to implementing the European Deposit Insurance Scheme (EDIS) and underlines the importance not to lose momentum in implementing the Banking Union;
  • supports the decision to provide only liquidity coverage in the first phase, increasing over the years;
  • underlines that the national deposit guarantee schemes that are responsible for covering losses should still be given full attention;
  • highlights that the transition towards loss coverage in the second phase is not automatic and calls for a formal decision to be founded on the broadest possible basis to make the proposal more concrete so that a swift progress can be made, together with all stakeholders;
  • underlines the importance of the immediate operability of the European Monetary Fund, in its function as a firewall for the SRM as a lender of last resort;
  • emphasises that the improvement and consolidation of the pillars of the Banking Union and the application of the Single Rulebook must go hand-in-hand with implementation by the financial industry of the SDG 2030 and the Paris commitments on climate change;
  • reiterates its commitment to a diverse financial ecosystem in which the large pan-European players coexist with small and medium-sized banks and other non-banking entities that focus reliably on the financing of the real economy on an equal footing, in an environment of much reduced systemic risk.