A proposed new agreement on dealing with failing banks, hammered out in a lengthy meeting of finance ministers, was headed for a summit of European leaders on Thursday. Described as an „historic achievement“ by Italian Economy Minister Fabrizio Saccomanni, the single-resolution mechanism (SRM) agency is designed to prevent failures like the collapse of Lehman Brothers in 2008. Ban
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(16.5.2018) “I have the impression that [EU member states] have the false impression that everything’s fine, but everything’s not fine and the job is half done,” Olivier Guersent, director general for financial stability, financial services and capital markets union, said at the annual conference of the Single Resolution Board (SRB) in Brussels.
Politicians need “a big enough crisis for them to be scared enough, but not big enough to kill us”, to finish the banking union project, he added.
Europe’s fund for helping failing banks is expected to swell to almost €33 billion ($38 billion) in 2019, up from nearly €25 billion earlier this year,
As well, the board’s decisions must be approved by EU finance ministers, leading some critics to say the process will be very complex. In a second step, governments will contribute to a resolution fund by imposing levies on banks over 10 years for a total of about 55 billion euros.