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THE NEW EU DIRECTIVE (2014/49/EU) ON DEPOSIT GUARANTEE SCHEMES
1.2 The outline of the reform agenda
(a)
Under this political agenda, the creation of the EBU
6
should result in
the establishment of a ‘Europeanised bank safety net’
7
consisting of:
• a Single Supervisory Mechanism exclusively for the banking sector (that
is, not for the insurance and securities sectors, the other two sectors of
the financial system) and mainly for credit institutions legally incorpo-
rated in euro area Member States,
• a Single Resolution Mechanism for unviable credit institutions (also
mainly incorporated in euro area Member States), and a Single Resolu-
tion Fund to cover any resulting funding gaps, provided that a decision
is made on the resolution of such credit institutions,
• a single deposit guarantee scheme, and
• a ‘single rulebook’ (‘einheitliches Regelwerk’, ‘recueil réglementaire
unique’) containing substantive rules on all the previous aspects, aim-
ing at a ‘total harmonisation approach’, as part of the single market for
financial services, applicable across EU Member States.
The term ‘euro area Member States’ denotes Member States whose cur-
rency is the euro
(Treaty on the Functioning of the European Union
(herein-
after the ‘TFEU’)
, Article 136)
.
8
On the other hand, the term ‘single rulebook’ is commonly used, from a
‘stricto sensu perspective’, to refer to the total harmonisation of rules per-
taining to the micro- and macro-prudential regulation and the micro-pru-
dential supervision of credit institutions. In June 2009, the European Council
called for the establishment of a “European single rulebook applicable to all
financial institutions in the Single Market”, i.e. a single set of harmonised
prudential rules.
• a democratic legitimacy and accountability framework (‘European Political Union’).
6. For arguments for or against establishing a European Banking Union, see indicatively
Carmassi, Di Noia and Micossi (2012)
,
Pisani-Ferry, Sapir, Véron and Wolff (2012)
,
Constâncio (2012)
,
Herring (2013)
, and
Pisani-Ferry and Wolff (2012)
.
7. For an overview of the components of the ‘bank safety net’, aimed at contributing to
the stability of the banking system, see
Gortsos (2012)
, pp. 90-106 (with further refer-
ences).
8. OJ C 83, 30.3.2010, pp. 47-390.