Re-assessing crisis management in the context of the Banking Union
The Banking Union project attempts to sever the bank-sovereign nexus that was one of its contributing factors to the Euro-crisis. The vision is an integrated banking framework through harmonising the application of banking rules across the Eurozone to ensure an equal protection of bank depositors.
The part of Banking Union dealing with crisis management was the creation of the Single Resolution Mechanism (SRM), introducing EU-level decision-making on bank resolution and the creation of a Standalone Resolution Authority, the Single Resolution Board (SRB) backed by a Single Resolution Fund financed by banks.
There have been some doubts expressed on the effectiveness of the SRM. Some of this is likely comes down to the limited resources available to the SRB in case of resolution and Member States continued willingness to bailout banks in the name of public interest. The SRB have been calling for changes, in particular on further harmonisation of resolution and insolvency rules as well as addressing the issues of liquidation in resolution.
The COVID-19 pandemic represents the first real test of Banking Union and this Seminar will address several questions: is the current framework working as intended? Will Banking Union remain hybrid between national and at the EU level or does Covid-19 necessitate further integration and harmonisation of resolution and insolvency rules? The SRB have increased the amount large EU cross-border banks have to pay into the Single Resolution Fund at a time when perhaps that money could be lent out by banks. Does this make sense given the need for bank financing across the EU and Member States continued preference to bailout failing banks? EDIS does matter, but with negative interest rates should this drop down the political list of priorities?
- Webinar link: https://zoom.us/j/94990125819
Speakers
-
Jiří ZapletalChair of the Ad Hoc Working Party on Strengthening the Banking Union, German PresidencyJiří Zapletal is Chair of the Ad Hoc Working Party on Strengthening the Banking Union and Chair of the Council Working Group on Crypto-Assets, under the German Presidency. Since 2017, he is a Financial Attaché at the Permanent Representation of Germany to the EU.
Since September 2016, Jiří is Advisor to the German Executive Director at the International Monetary Fund (IMF) and Advisor for Financial Issues of International Organisation, Development Financing, International Climate and Environment Protection at the Federal Ministry of Finance.
Jiří holds a master of European Integration and Development and a degree in Eastern European Studies.
-
Jonás FernándezMember of the European Parliament, S&D Group coordinator in the ECON CommitteeJonás Fernández Álvarez (Oviedo, 1979) is an MEP in the Progressive Alliance of Socialists and Democrats. He is a member of the Committee on Economic and Monetary Affairs, where he is the S&D coordinator. He is also a member of the newly created Committee on Tax Matters, and a substitute in the Committee on Budgets.
Mr. Fernández Álvarez holds an Executive MBA from IESE Business School (2010-12), a M.A. in Economics and Finance from CEMFI-Bank of Spain (2002-04), and a undergraduate degree in Economics from the University of Oviedo (1997-2001). He has completed his training with a program of Advanced Econometrics at the London School of Economics and Political Science (2006) and the Senior Executives in National and International Security at Harvard University (2016).
Professionally, Mr. Fernández Álvarez joined as an analyst in economics and international politics in the consultancy firm Solchaga Recio & Asociados in 2005, chaired by former Spanish finance Minister Carlos Solchaga. Three years later he was promoted to the company´s board and later on, appointed as Chief Economist in 2014. Mr. Fernández Álvarez has combined his work activity with teaching at the Universidad Carlos III (2007-10) and various entrepreneurial activities. In addition, he is a regular op-ed contributor to the main Spanish newspapers (El País, Cinco Días, La Nueva España, etc.). -
Sabino Fornies Martinez
Head of Resolution Task Force Unit, DG FISMA, European Commission
Sabino Fornies MartinezHead of Resolution Task Force Unit, DG FISMA, European Commission -
Sebastiano LaviolaMember of the Board & Director of Strategy and Policy Coordination, Single Resolution BoardMr Sebastiano Laviola joins the SRB in 2019, taking charge of resolution strategy and cooperation. This brief covers a range of cross-cutting issues relating to the core resolution activities (policies, standards, methodologies, financial stability) as well as the interplay with relevant stakeholders (NRAs, ECB, EC, EBA). In that capacity, he chairs the SRB Committee on Cooperation between the SRB and the NRAs.
He was previously a Central Director of Banca d’Italia, where he served since 1986. He spent most of his career in the Banking and Financial Supervision Department, dealing with analytical issues and coordinating policy on international regulation. He has been a continuous member, and chair, of international supervisory committees and working groups. In 2012, Sebastiano was seconded to the Permanent Representation of Italy to the EU in Brussels as Financial Services Attaché, where he negotiated financial services and Banking Union legislation.