Proposals For An Improved European Banking Union Framework – Part I

Following the global financial crisis of 2008 – 2009, the European Union embarked on a journey towards achieving a Banking Union for Eurozone countries, where harmonisation and integration across euro area banking systems are the key objectives. Much has been achieved in building this Banking Union, however, more work is underway.

The European Commission has recently published a package of legislative proposals to amend the European Union framework on banks' crisis management and deposit insurance ("CMDI") on 18 April 2023. Some radical changes are being envisaged through these proposals. The aim is to revisit the European Union framework to ensure that it is effective not only for larger banks, but also for medium-sized and small ones.