Commission welcomes the political agreement on the review of the bank crisis management and deposit insurance framework

The European Commission welcomes the political agreement reached yesterday by the European Parliament and the Council on the Commission proposal to review the bank crisis management and deposit insurance framework (CMDI). This reform is an important milestone to advance the banking union. It will better safeguard financial stability and avoid the use of taxpayer money to rescue failing banks.

The reform aims to enhance the ability of resolution authorities to manage the failure of small and medium‑sized banks by broadening the scope of resolution to include these banks when it serves the public interest. This will enable more banks to undergo an orderly exit, such as a sale to another bank, rather than being liquidated, thereby minimising economic disruption in the event of bank failures. The reform will also strengthen depositor protection across the European Union. The agreement also acknowledges the specificities of national banking sectors while ensuring that a level playing field is maintained.

Co‑legislators have reached an agreement on the key aspects of the reform. The Commission will continue to provide support to the European Parliament and the Council as they work together at a technical level to finalise the details of the agreement. Once the technical aspects are completed, co‑legislators will reconvene to endorse the final text.

Commissioner for Financial Services and the Savings and Investments Union, Maria Luís Albuquerque, said:

“This agreement strengthens the core promise of the banking union: that bank failures can be managed efficiently, fairly, and without burdening taxpayers. It is also the perfect example of what the Union can bring to European citizens. With the agreement found yesterday, that preserves the objectives of the Commission proposal, we reinforce the protection of citizens, businesses, local public administrations, and the society at large, against the impact of bank failures. This will strengthen financial stability, improve depositor confidence, and overall improve EU’s competitiveness. This reform is also an important milestone for advancing the banking union and further integrate EU banking markets, which are key pillars of the savings and investments union”.