The Executive Directors of the Austrian Financial Market Authority (FMA), Helmut Ettl and Klaus Kumpfmüller, welcome the agreement reached by the European Council, the European Commission and the European Parliament to create a Single Resolution Mechanism (SRM) for banks. “The Single Supervisory Mechanism (SSM), which lifts banking supervision up to a European level through close cooperation between both the ECB and national supervisors, will become operational in November of this year, so that the SRM, the second pillar of the European banking union, can soon be set up,” Ettl and Kumpfmüller pointed out. “The European regulation on the uniform regime for recovery or optional resolution of banks will ensure that a bank’s owners and investors will have to shoulder expenses first in the event that the bank faces difficulties. Banks will be required to regularly allocate funds to a resolution fund, which would be used to inject fresh capital in emergency situations.” The third pillar of the banking union, a European deposit guarantee scheme, is still under negotiation. “Today’s agreement marks a milestone: it prevents banks from putting pressure on governments in the future and will help save much taxpayer money,” Ettl and Kumpfmüller said.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006
+43/(0)676/882 49 516