SRB Held Annual Conference, Discussed Future of Bank Resolution
SRB held its fifth annual conference on banking resolution in October 2020. SRB published a report that provides a recap of the discussions and views presented at the conference by various experts. A large part of the discussions focused on the role of banks in addressing the economic impact of the unprecedented public health crisis. Despite an overwhelming consensus among speakers and panelists that banks, regulators, supervisory bodies, and other stakeholders involved had acted expediently to support economy during the COVID-19 crisis, the conference participants flagged critical missing elements of the resolution framework. Confidence in the resolution framework cannot be achieved until these missing pieces of the resolution puzzle are put into place. A European Deposit Insurance Scheme, the European Stability Mechanism backstop, and the development of a functioning Capital Markets Union were identified as points of urgency. The harmonization of insolvency regimes was another unresolved issue flagged.
Keywords: Europe, EU, Banking, COVID-19, Capital Markets Union, European Stability Mechanism, Resolution Framework, Common Backstop, EDIS, SRB
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
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