THE NEW EU DIRECTIVE (2014/49/EU) ON DEPOSIT GUARANTEE SCHEMES

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

should result in

the establishment of a ‘Europeanised bank safety net’

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)

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.