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Deloitte offer support to EC banking proposals

Deloitte have offered their support to European Commission’s proposals to deal with troubled banks and limit the fallout from the banking crises.

The proposals aim to limit the damage caused by a bank failure, and prevent problems spreading throughout the banking system.

Clifford Smout, co-head of the Deloitte EMEA Centre for Regulatory Strategy, believes that this indicates that is a major priority for European regulators, who view the use of bail-in of creditors as a credible approach to protecting taxpayers.

He commented: “Many of the core elements are similar to the UK approach to recovery and resolution plans but there are some important differences.

“Attention will focus on how these translate into workable solutions and how requirements such as the proposed role and powers of the European Banking Authority, the possible use of a special manager in the recovery phase and the financing of a resolution fund sit alongside or alter the UK resolution regime.

“The position of EU branches of firms headquartered outside the EU may also prove interesting.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .