15 Apr 2014
European Parliament adopts Single Resolution Mechanism bill
FXStreet (Łodź) - The European Parliament approved the Single Resolution Mechanism for the Banking Union bill today, a set of laws designed to restructure and resolve failing banks and to protect taxpayers from incurring costs of bailing out distressed financial institutions in the EU.
"Today, the European Parliament has adopted three key texts to complete the legislative work underpinning the banking union," Internal Market Commissioner Michel Barnier said in a statement. "Thanks to the assiduous work of the co-legislators, we have turned the idea of a banking union into reality in less than two years."
The laws adopted on Tuesday include the creation of a Single Resolution Mechanism and a 55 billion euro Single Resolution Fund as well as the Directive on Deposit Guarantee Schemes, which shields bank deposits of up to 100,000 euros from potential losses during a bank failure.
"Today, the European Parliament has adopted three key texts to complete the legislative work underpinning the banking union," Internal Market Commissioner Michel Barnier said in a statement. "Thanks to the assiduous work of the co-legislators, we have turned the idea of a banking union into reality in less than two years."
The laws adopted on Tuesday include the creation of a Single Resolution Mechanism and a 55 billion euro Single Resolution Fund as well as the Directive on Deposit Guarantee Schemes, which shields bank deposits of up to 100,000 euros from potential losses during a bank failure.