Bank Crisis Resolution Paves the Way to Protection of Taxpayers

The European Parliament's Economic and Monetary Affairs Committee is about to fully endorse Gunnar Hökmark's proposals for the so-called banking crisis resolution, which aims to provide some harmonisation of national laws and tools for preventing, quickly addressing, and resolving bank crises. The existance of harmonised tools and powers will allow national authorities to adopt a more common approach to dealing with banks and difficulties. The proposals would also see the establishment of national resolution funds, financed by the banks themselves which would be used in order to minimise taxpayers' losses in case of a bank needing propping up. A final vote by the committee will take place in May. Available material includes an edited package.