Following the agreement by the European Parliament on the Risk Reduction Measures Package (RRM), Michael Lever, Head of Prudential Regulation, said: 

“We welcome the final agreement on the RRM package by the European Parliament, which marks an important milestone in lowering the risk of bank failures and avoiding tax payer funded bailouts.”

“Despite these achievements, much remains to be done. The European banking market continues to be segmented across national lines and Banking Union is failing to deliver the degree of financial integration expected. Distrust amongst Member States lies at the root of this, resulting in barriers to the free flow of capital and liquidity across the EU, preventing the diversification of risk and introducing systemic fragilities.”

“Unlocking the full benefits of Banking Union requires this lack of trust to be addressed. It also requires the huge progress already achieved - through stronger prudential requirements and more effective supervision and resolution – to be acknowledged. The establishment of a European Deposit Insurance Scheme would clearly help the move in that direction.”

-ENDS-