Laboureix outlines path to stronger Banking Union competitiveness
Single Resolution Board Chair Dominique Laboureix emphasized the need for a simpler and more integrated Banking Union to boost Europe's competitiveness. Speaking to the ECON committee, she highlighted achievements and future steps for the framework.
Streamlining the resolution framework
Europe's Banking Union has made significant progress, reducing regulatory fragmentation with a single rulebook, Single Supervisory Mechanism (SSM), and Single Resolution Mechanism (SRM).
Resolution plans are now in place for all major banks, and the Single Resolution Fund has reached €81 billion.
The SRB actively contributes to simplification by streamlining reporting and data requests, and moving towards more proportionate resolution planning cycles.
This allows both banks and authorities to focus resources where risks are high.
As Laboureix stated, "Simplification, therefore, is not about weakening the framework.
It is about making it clearer, more proportionate, more efficient and easier to implement.
" This approach aims to better support Europe's growth and competitiveness while preserving financial stability.
Addressing the missing pieces
The Commission's consultation also addresses the Banking Union's missing elements, notably a European deposit insurance framework (EDIS) and credible liquidity in resolution.
While supervision and resolution are integrated at the European level, deposit protection remains largely national.
Fragmented confidence along national lines limits cross-border banking integration and reduces the efficiency with which banks can support the European economy.
Completing these elements is crucial for strengthening depositor confidence and enabling banks to better support the European economy.
Progress, but the journey continues
The Banking Union has achieved significant milestones in reducing fragmentation and enhancing crisis management.
However, the continued absence of a European deposit insurance scheme and robust liquidity in resolution critically impedes true integration and competitiveness.
While simplification is welcome, core structural deficiencies demand urgent political will to ensure the Banking Union fully delivers on its promise.