POLICY BRIEF 13-5

From Supervision to Resolution: Next Steps on the Road to European Banking Union

by Nicolas Veron, Peterson Institute for International Economics
and Guntram B. Wolff, Bruegel

February 2013

Special resolution regimes for banks and systemically important financial institutions are an attractive alternative to both insolvency and public bailouts and have a compelling track record. The European Council has outlined a policy sequence of three successive steps including the Single Supervisory Mechanism (SSM), the Bank Recovery and Resolution (BRR) Directive and the operational framework for direct recapitalizations, and the Single Resolution Mechanism (SRM). Implementing this sequence will involve a complex balancing of short-term, medium-term, and long-term objectives. The creation of the SRM will be a key milestone and should take place as early as possible.

View full document [pdf]


RELATED LINKS

Policy Brief 13-23: How to Form a More Perfect European Banking Union October 2013

Policy Brief 13-17: A Realistic Bridge Towards European Banking Union June 2013

Op-ed: Five Myths about the Euro Crisis September 7, 2012

Article: Why the Euro Will Survive: Completing the Continent's Half-Built House August 22, 2012

Testimony: Challenges of Europe's Fourfold Union August 1, 2012

Working Paper 12-12: Sovereign Debt Sustainability in Italy and Spain: A Probabilistic Approach August 2012

Policy Brief 12-20: Why a Breakup of the Euro Area Must Be Avoided: Lessons from Previous Breakups August 2012

Policy Brief 12-18: The Coming Resolution of the European Crisis: An Update June 2012

Book: Transatlantic Economic Challenges in an Era of Growing Multipolarity July 2012

Book: Resolving the European Debt Crisis March 2012

Policy Brief 12-4: The European Crisis Deepens January 2012

Policy Brief 11-21: What Can and Cannot Be Done about Rating Agencies November 2011

Working Paper 11-2: Too Big to Fail: The Transatlantic Debate January 2011

Policy Brief 10-27: How Europe Can Muddle Through Its Crisis December 2010

Policy Brief 10-14: In Defense of Europe's Grand Bargain June 2010

Op-ed: New Imbalances Will Threaten Global Recovery June 10, 2010

Book: The Euro at Ten: The Next Global Currency? July 2009

Op-ed: Europe Must Look East to Deal with the Euro October 11, 2007

Op-ed: Start by Saving the Eurozone October 24, 2008

Speech: The Euro and the World Economy April 27, 2005

Book: The Euro at Five: Ready for a Global Role? April 2005



© 2014 Peter G. Peterson Institute for International Economics. 1750 Massachusetts Avenue, NW.
Washington, DC 20036. Tel: 202-328-9000 Fax: 202-659-3225 / 202-328-5432
Site development and hosting by Digital Division