The Single Resolution Board’s latest report to the Eurogroup highlights gaps in addressing liquidity and solvency risks, identifying the European Commission’s forthcoming banking package as an opportunity for reform. Operational disruptions can also threaten essential services at financially sound banks. The board is strengthening preparedness for these scenarios with European supervisory and national authorities.
Policy & regulationCooperationLiquidity riskOperational risk and resilienceGeopolitical risk
Single Resolution Board (SRB) Chair Dominique Laboureix presented the latest twice-yearly reporting note to the Eurogroup, highlighting gaps in Europe’s banking crisis framework, particularly in addressing liquidity and solvency risks. The European Commission’s forthcoming banking package offers an opportunity to tackle these issues, simplify and modernize rules, and advance the banking union. This continues the SRB’s earlier emphasis on completing the framework through stronger liquidity arrangements in resolution and more integrated European deposit protection.
Preparedness must also extend beyond financial risks. Cyberattacks, information and communication technology disruptions and critical infrastructure outages can interrupt essential banking services even when banks remain financially sound. The SRB is strengthening preparedness for these scenarios with the Single Supervisory Mechanism, national authorities and other European partners.
In a speech, the Single Resolution Board said post-crisis bank resolution reforms have worked, citing Banco Popular and Sberbank Europe as cases handled without taxpayer losses. It argued, however, that the Banking Union remains incomplete without a common liquidity backstop and European deposit insurance, despite recent CMDI improvements. The…
The Single Resolution Board has responded to the European Commission’s consultation on EU banking competitiveness, outlining how the resolution framework could better support financial stability and competitiveness. It identifies four priorities: a more integrated European deposit protection framework, stronger liquidity-in-resolution…