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Reform of bank crisis management and deposit insurance framework

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The European Commission has today adopted a proposal to adjust and further strengthen the existing EU bank crisis management and deposit insurance (CMDI) framework. The proposal will enable authorities to organise an orderly market exit for failing banks of any size and business model, including smaller players.

Today’s proposal draws on the lessons learned from the first years of application of the framework, and makes further improvements. It will give resolution authorities even more effective tools to ensure that, when a crisis occurs and when financial stability is at stake, depositors – for instance individuals, businesses and public entities – can continue to access their accounts. In particular, it will facilitate the use of industry-funded safety nets to enable authorities to shield depositors in bank crises, such as through the transfer from an ailing bank to a healthy one.

Overall, this will preserve financial stability, protect taxpayers and depositors, and increase the efficiency of the crisis management framework for the economy.

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