In an opening address at the Single Resolution Mechanism’s (SRM) 10th anniversary conference, European Central Bank Vice-President Luis de Guindos reviewed the SRM’s role in strengthening the EU’s bank resolution framework and argued that the banking union remains incomplete. He urged EU legislators to close key gaps and to pursue deeper financial integration to support cross-border banking and capital market development. De Guindos pointed to the build-up of loss-absorbing and recapitalisation capacity and the creation of the EUR 80 billion Single Resolution Fund as core achievements, citing the 2017 resolution of Banco Popular as an example of orderly resolution using bail-in. Looking ahead, he highlighted three legislative priorities: finalising ratification of the reformed European Stability Mechanism Treaty to provide the Single Resolution Fund backstop, establishing a European framework for liquidity in resolution, and advancing a European deposit insurance scheme, noting that the recent agreement on reforms to the crisis management and deposit insurance framework does not replace EDIS. He also called for reducing national ring-fencing and other barriers to cross-border activity, further harmonisation in areas including tax, insolvency and corporate law, more integrated EU capital markets supervision through a gradual expansion of powers for the European Securities and Markets Authority, and simplification efforts including an integrated reporting system to reduce administrative burden and overlaps across EU authorities.
European Central Bank 2025-10-15
European Central Bank vice-president calls for ESM backstop, liquidity-in-resolution framework and EDIS to complete the banking union
European Central Bank Vice-President Luis de Guindos, at the Single Resolution Mechanism's 10th anniversary conference, stressed completing the EU banking union and enhancing financial integration. He highlighted the EUR 80 billion Single Resolution Fund and legislative priorities like ratifying the reformed European Stability Mechanism Treaty, establishing a European liquidity framework, and advancing a European deposit insurance scheme. De Guindos also advocated for reducing national barriers, harmonizing tax and corporate laws, and expanding the European Securities and Markets Authority's powers.