On Wednesday 5 November, Dominique Laboureix, Chairman of the Single Resolution Board (SRB), put forward a number of ideas for simplifying the European rules governing bank resolution.
Speaking before the European Parliament’s Committee on Economic and Monetary Affairs (ECON), Mr Laboureix called for a “targeted review” of the “cumbersome” process that requires banks to “ask for prior permission before redeeming ‘MREL’ instruments” that can be used in the event of default. He also felt that it would be possible to increase the proportionality of certain reporting obligations that apply to small banks.
As for the “complex” issue of simplifying capital stacks (see EUROPE 13722/10), Mr Laboureix cited two “key conditions”: the reform must be “holistic” and “aligned with existing international standards”. “A good place to start could be the complex and often overlapping capital buffers”, he added.
CMDI. On Wednesday, the ECON Committee approved, by a large majority, the agreement reached with the Council of the EU on the ‘CMDI’ package aimed at strengthening the management of a banking crisis (see EUROPE 13668/10).
The results of the votes are as follows: - revision of the ‘BRRD’ Directive (2014/59): 40 in favour, 2 against, 7 abstentions; - revision of the ‘SRMR’ Regulation (806/2014): 39 in favour, 1 against, 9 abstentions; - revision of the ‘DGSD’ Directive (2014/49): 42 votes in favour, 1 against, 7 abstentions.
The EU Council still has to decide on the provisional interinstitutional agreement.
Mr Laboureix called for the completion of the banking union through the establishment of a European Deposit Insurance Scheme (EDIS). (Original version in French by Mathieu Bion)