MNI BRIEF: EU Makes Progress In Bank Crisis Management Talks
EU states have agreed a significant step forward in extending the scope of resolution procedures to smaller banks, a move which makes possible a reopening of long-stalled talks on strengthening Banking Union in the near future, officials said
The agreement allows talks between member states and the European Parliament on the Bank Crisis Management and Deposit Insurance framework to get underway.
The Belgian EU presidency said that it was a "significant step towards a more integrated and effective crisis management framework" and said it would help "address the challenges posed by the resolution of small and medium-sized banks. (See MNI: EU Deal To Limit Deposit Guarantee Role In Bank Failure)
Agreement on the CMDI is a precondition for restarting discussions on further completion of Banking Union, including easing cross-border integration of banks, European Deposit Insurance and Regulatory Treatment of Sovereign Exposures, although the latter two projects remain controversial.