Press Release: Single Resolution Mechanism: Council confirms deal with EP

The Permanent Representatives Committee approved on the 31 March 2014, on behalf of the Council of the European Union, a compromise agreed with the European Parliament on a regulation establishing a single resolution mechanism for failing banks.

This would enable the Parliament to approve the text at first reading before it adjourns for elections in May 2014. The Council planned to subsequently adopt the regulation without further discussion.

The creation of a single resolution mechanism (SRM) – with a central decision-making board and a single resolution fund – will ensure that resolution decisions across participating member states will be taken in a coordinated and effective manner, minimising negative impacts on financial stability and reducing the dependence of banks on the creditworthiness of sovereigns.

• Primary Source

ESO: Background information: Commission proposes Single Resolution Mechanism for the Banking Union http://www.europeansources.info/record/press-release-commission-proposes-single-resolution-mechanism-for-the-banking-union/

ESO: Background information: A comprehensive EU response to the financial crisis: substantial progress towards a strong financial framework for Europe and a banking union for the eurozone http://www.europeansources.info/record/memo-a-comprehensive-eu-response-to-the-financial-crisis-substantial-progress-towards-a-strong-financial-framework-for-europe-and-a-banking-union-for-the-eurozone-3/

European Central Bank: Press Release, 20.03.14: Statement of the ECB on SRM agreement https://www.ecb.europa.eu/press/pr/date/2014/html/pr140320.en.html

EurActiv, 11.04.14: Michel Barnier: “We set up the banking union in record time” http://www.euractiv.com/sections/euro-finance/michel-barnier-we-set-banking-union-record-time-301520

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