EBI is happy to announce a contribution of Christos Gortsos (National and Kapodistrian University of Athens) in the EBI Working Paper Series No. 142. His paper entitled “A reform of the CMDI framework that supports completion of the Banking Union” was published on 20 May 2023.
This study, prepared at the request of the ECON Committee of the European Parliament, analyses the key elements for the review of the existing EU bank crisis management and deposit insurance (CMDI) framework, including the recent (April 2023) legislative proposals tabled by the Commission, and the need to reach political consensus on the creation of a European Deposit Insurance Scheme (EDIS) and a European Deposit Insurance Fund (EDIf). It is structured in four Sections.
Section 1 briefly presents the three pillars of the Banking Union (BU) and of the underlying single rulebook, discusses the elements of the uncompleted (unfinished) agenda, and then focuses on the recent proposals for amending the legislative acts relating to the CMDI framework in the BU (and the EU as a whole). Subsequently, Section 2 then discusses the options in relation to the parallel review of the CMDI framework and the creation of the EDIS/EDIF, after which the positions of the European Parliament, Commission, Eurogroup, European Central Bank (ECB) and Single Resolution Board (SRB) are outlined. The following Section 3 analyses in some detail the key elements pertaining to the review of the CMDI framework, and, in particular, those on the provisions of this framework which govern measures before the failure of credit institutions, and those on its provisions which govern selected aspects relating to resolution actions and insolvency proceedings. Section 4 contains finally the concluding remarks and assessments, including the author’s views (mainly) on the unfinished agenda relating to the BU.