The European Banking. Union. Supervision and Resolution. Giuseppe Boccuzzi Director General, Interbank Deposit Protection Fund, Itäly

Transcription

1 The European Banking Union Supervision and Resolution Giuseppe Boccuzzi Director General, Interbank Deposit Protection Fund, Itäly

2 Contents List offigures Preface Prologue ix x xii Introduction 1 Some preliminary Observation: on the new legal framework 6 1 The Financial Crisis and the Banking Union Project 13 1 The weakness of the institutional framework for managing banking crises before the financial crisis 13 2 The first timid (and difficult) attempts to regulate banking insolvency 14 3 The answer to the financial crisis: the Banking Union project 18 2 The First Pillar of the Banking Union: The Single Supervisory Mechanism 23 1 The evolution of banking supervision at the European level The first phase: the reform of regulation procedures (the Lamfalussy system) and the logic of co-operation and coordination in banking supervision The second phase: strengthening international co-operation and the creation of European supervisory bodies (De Larosiere project) The point of arrival: the centralisation of supervisory functions (the Single Supervisory Mechanism) 30 2 The Single Supervisory Mechanism: the legal and institutional profiles The division of responsibilities between the ECB and national supervisory authorities The potential conflict of interest between supervisory and monetary policy functions: the independence and Separation principles Relations with the EBA The Organisation of shared supervision The preparatory stage of the SSM The role of the ECB in banking crisis management 43 V

3 vi Contents 3 The European Reform of the Rules for Banking Crisis Management: The Bank Recovery and Resolution Directive 48 1 The new European rules for crisis management 48 2 The setting up of National Resolution Authorities 50 3 A significant innovative theme: the handling of cross-border group crises: the establishment of Resolution Colleges 51 4 A new Strategie approach: towards a complete and integrated Vision to deal with crisis phenomena Preparatory and preventative measures Recovery plans Resolution plans Early Intervention Definition of triggers for Intervention Choice of early Intervention tools Resolution Triggers for resolution action Powers of the resolution authority Resolution tools Government financial stabilisation tools Safeguards for third parties Liquidation 99 5 Financing resolution. The establishment of the Bank Resolution Fund (BRF) Funding mechanism The use of bank resolution funds Intervention of deposit guarantee schemes in the resolution Recourse to the European Stability Mechanism (ESM) A challenge for the future: the harmonisation of insolvency regimes The Second Pillar of the Banking Union: From the National Resolution Authorities to the Single Resolution Mechanism The regulatory path towards the centralisation of crisis management Conferring tasks on the Single Resolution Board: the legal basis Decision-making process in resolution: a fractious, perhaps inevitable, system The setting-up of a Single Resolution Fund Financial resources and the funding mechanism of the Single Resolution Fund 124

4 Contents vii 4.2 The Intergovernmental Agreement on transfer and mutualisation of resources to the Single Resolution Fund Contribution mechanism to the fund Relations between the SRF and the Deposit Guarantee Systems The Third Pillar of the Banking Union: The Pan-European Deposit Guarantee Scheme The role of deposit guarantee schemes Directive 94/19/EC DGSD reform: from minimum to maximum harmonisation The reform process and general lines of regulatory Intervention Main aspects of the reform Scope of guarantee, payout procedures and timeframe Stress testing of deposit guarantee systems Financial means and funding mechanism of DGSs Use of funds Institutional Protection Schemes Co-operation and exchange of Information between DGSs and other authorities within the safety net Cross-border co-operation Banking Crises and State Aid Discipline State aid general rules The special discipline for the financial sector The 2013 Communication of the European Commission The burden-sharing principle and the need for a bank restructuring plan Recapitalisation and impaired asset measures Guarantees and liquidity support Intervention of Deposit Guarantee Schemes (DGSs) Aid to bank liquidation The rationale for EU action: the growth target Conclusions The Implantation of the new European regulations on banking crisis management in national legislations 165

5 viii Contents 2 The Identification of the resolution authority The scope and the use of tools: the flexibility of the Directive and the left to Member States for discretionary measures The safeguards for subjects affected by resolution measures DGSD Implementation: national legislative choices 173 Notes 176 Bibliography 208 Index 217