SRB urges EU banking integration, MREL simplification
The Single Resolution Board (SRB) has submitted its response to the European Commission's consultation on EU banking sector competitiveness. The SRB advocates for deeper integration and targeted simplification of resolution frameworks.
Four Pillars for Integration
The SRB's response highlights four key areas to enhance both resilience and integration within the EU banking sector.
These include advancing towards a more integrated European deposit protection framework and strengthening the existing framework for liquidity in resolution.
Furthermore, the SRB emphasizes the importance of enhancing the cross-border allocation of capital and liquidity within banking groups, supported by robust resolvability safeguards.
Finally, the Board promotes targeted simplification, such as greater coherence across various regulatory frameworks and streamlined MREL processes, all while preserving the fundamental resilience of the financial system.
The consultation offers a timely opportunity to reflect on how the EU framework can support both financial stability and competitiveness.
Strengthening the Banking Union
Over the past decade, the European Banking Union has significantly bolstered the resilience of European banks and the broader financial system.
However, the SRB notes that the Union remains incomplete, with persistent fragmentation continuing to hinder deeper integration and overall efficiency.
The SRB's submission aims to address these challenges by focusing on areas within its mandate where further progress can contribute to a more robust and integrated banking landscape.
The Board expressed its readiness to continue engaging with the European Commission and relevant stakeholders as this important work progresses.