Public funding of failing banks in the European Union (LBF vol. 19) 2020/6.6.2.1:6.6.2.1 Commission cannot endorse assessment of resolution conditions

Public funding of failing banks in the European Union (LBF vol. 19) 2020/6.6.2.1

6.6.2.1 Commission cannot endorse assessment of resolution conditions

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

The Commission only has the power to endorse a decision by the SRB to adopt a resolution scheme. It does not have the power to endorse the decision by the SRB concerning the assessment of the conditions for resolution without the resolution scheme being adopted. In that case, it is only an observer at the SRB meetings. Moreover, the Council plays no role should the SRB decide that resolution is not in the public interest.

Taking into account the political sensitivity of this decision and the potential impact that this negative decision may have on the financial stability of Member States and the Union, it should be considered in the author’s view whether the Council should be given the power to intervene on the request of a Member State and on the proposal of the Commission, should the SRB decide that there is no public interest that justifies the resolution of a bank. Another option is to subject the assessment of the conditions for resolution to the same decision-making process as applies to the decision to put a bank in resolution.

Deze functie is alleen te gebruiken als je bent ingelogd.