Proposals For An Improved European Banking Union Framework – Part II

In the first part of this article, we dealt briefly with the European Commission's proposals to further strengthen and ensure the proper application of the existing common framework for managing bank failures, through the publication of a proposed package amending the framework on banks' crisis management and deposit insurance ("CMDI") on 18 April 2023.

We also saw that the Commission is proposing to widen the scope for applicability of the European banking resolution regime to cover smaller institutions. This should be of relevance to Malta which, to date, has not used the European resolution legislative framework when dealing with the liquidation of Pilatus Bank, Nemea Bank or Satabank.