Banking Union: Towards new arrangements for the provision of liquidity in resolution?
The recent case of Banco Popular has shown the importance of liquidity funding in the context of bank resolution. The Eurogroup report endorsed by the December 2018 Euro Summit noted the “broad support for the assessment of the institutions [i.e. ECB, SRB and Commission] that there are limitations in the current framework [for liquidity provision in resolution] which may hamper its effectiveness. The June 2019 Euro summit has not yet reached any conclusions on the design of that liquidity facility, as planned. The Eurogroup is expected to report back to the Euro-Summit in December 2019. This briefing (1) describes the existing arrangements in the Banking Union, (2) compares those arrangements with the US and the UK regimes and (3) echoes ongoing reflections on possible new arrangements with a view to completing the Banking Union. This briefing is an updated version of a briefing initially drafted in July 2018.
Briefing
About this document
Publication type
Keyword
- aid for restructuring
- anti-crisis plan
- bank
- BUSINESS AND COMPETITION
- business organisation
- company in difficulties
- economic conditions
- economic policy
- economic recession
- ECONOMICS
- EU banking union
- EU finance
- EU institutions and European civil service
- Eurogroup (euro area)
- European Central Bank
- EUROPEAN UNION
- FINANCE
- financial institutions and credit
- fund (EU)
- monetary economics
- monetary relations
- State aid