Brussels, 29/11/2013 (Agence Europe) - On Friday 29 November, member states' experts examined the draft legislation to introduce a single bank resolution scheme (see EUROPE 10970).
In a new draft compromise, the Lithuanian Presidency gives national resolution authorities greater powers, granting them the authority to prepare resolution plans for the smaller banks that are not part of a bigger group and also for bank groups that are not monitored directly by the ECB under the single resolution mechanism.
National authorities would submit the resolution plans to the future resolution board, which would have ten days to issue duly justified opposition, failing which the resolution plan would be deemed accepted.
Resolution fund. The new draft compromise lays down the contributions that industry must make to the single resolution fund, which must have 0.8% of bank deposits within ten years (or some €50 billion to €60 billion at current rates). Each year, the financial institutions of a member state would have to pay in a tenth of the total funding contributions. A quarter of each bank's contribution would be a fixed rate based on the bank's liabilities, and the remainder would depend on the type of risks run by the bank. When banks assets (not including capital requirements and deposits of under €100,000) are below a certain figure (not specified by the Lithuanian Presidency), then they would not have to pay any contributions to the single resolution fund. (MB/transl.fl)