|
European Banks are pleased to see that European Finance Ministers early this morning agreed on Council’s general approach on how to negotiate the much awaited Bank Recovery and Resolution Directive in the upcoming Trilogues with the European Parliament and Commission. Nevertheless, the EBF remains concerned to see the Council again backing away from the principle of the Single Market by allowing flexibility to Member States with respect to excluding certain classes of creditors and depositors from the bail-in tool within a bank failure.
“Any significant flexibility for resolution authorities to exclude eligible liabilities will drastically distort clarity and predictability for investors to estimate ex-ante what the impact of bail-in will be, which will force them to...
|