The European Commission has welcomed a political agreement between the European Parliament and the Council on reforms to the European Union’s bank crisis management and deposit insurance (CMDI) framework, aimed at strengthening the banking union and reducing reliance on taxpayer-funded rescues. The agreed approach would broaden the scope for using resolution for small and medium-sized banks when it is in the public interest, enabling more orderly exits such as transfers or sales to another bank rather than liquidation, and seeks to strengthen depositor protection across the EU while recognising national banking sector specificities and maintaining a level playing field. Work now continues at technical level to finalise the details, after which the co-legislators are expected to reconvene to endorse the final text.
European Commission 2025-06-26
European Commission welcomes political agreement to expand EU bank resolution tools for smaller banks under the crisis management and deposit insurance reform
The European Commission has endorsed a political agreement between the European Parliament and the Council on reforms to the EU's bank crisis management and deposit insurance framework. The reforms aim to enhance the banking union by broadening resolution options for small and medium-sized banks and strengthening depositor protection while considering national banking sector specificities. Technical work continues to finalize details before co-legislators reconvene to endorse the final text.