United Kingdom (and EU regulation)

Completing the Banking Union – next steps

The European Commission has published a communication entitled Towards the completion of the Banking Union.

In the communication the Commission notes the following measures in order to complete the Banking Union:

full and rapid transposition and implementation of the agreed legal provisions (notably the Bank Recovery and Resolution Directive and the Deposit Guarantee Schemes Directive);
swift agreement on an effective bridge-financing arrangement for the Single Resolution Fund and on a common fiscal backstop which should be fiscally neutral over the medium term, i.e. any use of taxpayers money would be subsequently reimbursed by the banks;
a legislative proposal for a European Deposit Insurance Scheme; and
a parallel effort to further reduce risks in the banking sector and weaken the link between banks and their national sovereign.