Source: BIS

What needs to be done to improve the efficiency of the resolution framework of the banking union

The resolution framework of the banking union is a significant achievement that has proved capable of managing idiosyncratic bank failures. However, certain features increase its complexity and undermine its efficiency compared with the frameworks of other major jurisdictions. These features include cumbersome decision-making procedures; detailed arrangements for coordination among EU/BU and national authorities; granular and complex regulation, including rules on MREL calibration; and a comp...