On 18 April 2023 the European commission adopted its proposal to adjust and further strengthen the crisis management and deposit insurance framework (CMDI). The proposal will boost and harmonise the crisis management of medium-sized and smaller European banks in particular.
The objectives of the legislative proposal may be summarised as follows:
- Preserving the stability of the financial system and protecting taxpayers' money by making potentially more efficient use of the funds financed by the banking sector
- Shielding the real economy from the impact of bank failure by extending and harmonising the use of resolution tools when banks fail
- Providing greater coverage of deposit protection for depositors by harmonising further the regulation, extending deposit protection to public entities and client funds, and harmonising the protection of temporarily higher deposits.
The European Parliament and the Council will now discuss the legislative package.
European Commission press release regarding the proposal
More information: Hanna Westman ([email protected])
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