Banking Crisis Management Framework: Conference, Brussel - Hoofdinhoud

The news:

On 19 March the European Commission will host a high level one-day conference on the construction of a new crisis management framework in the banking sector. The conference will provide an opportunity for the Commission to present the results of its recent public consultation and to set out its ideas on how to move forwards in this important policy area. It will also provide an opportunity for eminent speakers and panellists from different backgrounds to express their views about what should be done.

The conference will feature a mixture of keynote addresses and panel discussions. It will be divided into three sessions:

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  Early intervention: which new tools for supervisors?

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  Making bank resolution effective across borders

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  Bank insolvency framework: coordination or integration?

Keynote speakers include:

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  Michel Barnier - Internal Market and Services Commissioner

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  Sharon Bowles - Chair, European Parliament ECON Committee

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  Jean-Claude Trichet - President, European Central Bank

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  Dominique Strauss-Kahn - Managing Director, International Monetary Fund (IMF)

The background:

During the recent financial crisis, a number of governments had to take emergency action to stabilise banks. Without that government intervention, several banks might have failed. The fast and effective intervention by national governments avoided this and prevented serious financial meltdown. The unprecedented circumstances of the crisis justified that exceptional action. However, governments acted under national law. There is currently no EU framework for managing crises in the banking sector, and the crisis has clearly shown that the lack of an EU regime hampers the ability of governments to deal with problems in cross-border banks.

In October 2009, the Commission adopted a Communication on an EU framework for crisis management in the banking sector. The purpose of the Communication was to consult as widely as possible on a broad range of issues aimed at safeguarding financial stability and the continuity of banking services in a cross-border banking crisis. The Communication set out questions on the tools that the Commission considers would be necessary for an EU crisis management framework. These tools range from “early intervention” action by banking supervisors aimed at correcting irregularities at banks, to bank resolution measures which involve the reorganisation of ailing banks, to insolvency frameworks under which failed banks are wound up.

The event:

High-level conference in Alcide de Gasperi Auditorium, Charlemagne Building, 170 rue de la Loi, 1000 Brussels