Making DGSs 'Fit For Purpose' – Final Compromise On DGSD Reached As Part Of The CMDI Framework Reform Package

RegCORE Client Alert | Banking Union

QuickTake

Legislative proposals to reform the EU's bank crisis management and deposit insurance (CMDI) framework (the Proposals) were adopted by the European Commission (the Commission) in April 2023, as covered in an earlier Client Alert by PwC Legal's EU RegCore. The Proposals are comprised of a l egislative package of targeted amendments to the currently applicable banking recovery and resolution regime, as composed of the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism Regulation (SRMR) and the Deposit guarantee Schemes Directive (DGSD). In addressing a set of deficiencies in the current regime, the Proposals aim to make it easier for authorities to organise an orderly market exit for a failing bank of any size and business model. One year later, the question arises as to where we stand?