Crisis Management

Why crisis management matters to banks

Effective crisis management frameworks enable banks to navigate financial stress while preserving stability. This requires ongoing dialogue between the EBF, regulators and supervisors to strike the right balance between financial stability and economic growth.

Recovery and Resolution

An effective resolution framework is equally essential. Banks require orderly, quick and efficient mechanisms to manage financial failure without spillover to other institutions or the wider economy.

Resolution preparedness protects depositors, maintains confidence in the financial system and preserves the continuity of critical banking services. A mature resolution framework, developed through constructive dialogue between the EBF, authorities and the banking industry, ensures that both supervisors and banks are equipped to manage systemic risk.

Managing the gone concern of banks

The EBF supports the development of effective ways to deal with financial failure of banks in an orderly, quick and efficient manner, avoiding any spill over to other financial institutions and the wider economy. Special resolution regimes have been conceived in order to preserve the continuity of banks’ critical functions and financial stability.

EBF Expert Group Engagement

The EBF engages with EU institutions to ensure the appropriate level of resolvability across the banking sector through regular exchanges with authorities to ensure guideline operability, including workshops and responses to SRB consultations.

The platform is steered by the SRM Expert Group, made of representatives from banks and banking associations across Europe.

Some issues discussed: liquidity and funding in resolution, resolvability simplification, operational continuity, separability and restructuring, joint liquidity exercise, loss absorption and recapitalisation capacity, and other relevant topics.

Key EBF positions

The EBF has supported the development of effective frameworks to manage financial failure of banks in an orderly, quick and efficient manner, avoiding spillovers to other financial institutions and the wider economy. Through active engagement with the Single Resolution Board and the banking industry, the EBF has facilitated constructive dialogue, contributing to more mature resolution plans and improved compliance by banks.

While banks are now better prepared for resolution than ever before, the EBF remains committed to continuing this cooperation to ensure an appropriate level of resolvability across the banking sector. This includes further strengthening resolution preparedness through a simpler, more effective, and more consistent resolution framework.

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