Date: 28th May 2021

In response to the global financial crisis, the EU started working towards a safer financial sector for the EU single market, triggering changes to European financial legislation and to the financial supervisory architecture. The single rulebook for all financial actors in the EU was enhanced, comprising stronger prudential requirements for banks, improved protection for depositors and rules to manage failing banks. The first two pillars of the banking union – the single supervisory mechanism (SSM) as well as the single resolution mechanism (SRM) – were also created. The third pillar of the banking union, a common deposit insurance, is still missing. The EU bank crisis management and deposit insurance framework lays out the rules for handling bank failures while protecting depositors. It consists of three EU legislative texts acting together with relevant national legislation: the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism Regulation (SRMR), and the Deposit Guarantee Schemes Directive (DGSD).

The Commission launched a public consultation, covering BRRD, SRMR and DGSD, to gather evidence in the form of relevant stakeholders’ views and experience with the current crisis management and deposit insurance framework, as well as on its possible evolution in the forthcoming reviews. Please find BETTER FINANCE's responses to the consultation below.