Speakers
Chair
Dominique Laboureix
Chair - Single Resolution Board (SRB)
Public Authorities
Fernando Restoy
Chair - Financial Stability Institute (FSI)
Ludek Niedermayer
Vice - Chair & MEP
Maciej Szczęsny
President of the Management Board - Bank Guarantee Fund
Nicoletta Mascher
Head of Financial Sector and Market Analysis - European Stability Mechanism (ESM)
Industry Representative
Axel Marmottant
Head of Capital and Resolution - Crédit Agricole S.A.
Objectives
This session will first focus on the necessary measures to strengthen confidence and certainty in the EU crisis management framework and address ring-fencing measures. The discussion will then turn to the remaining MREL issues (calibration level vs. US TLAC, impact of Basel 3…). If time permits, speakers will be invited to express their views on the appropriate EU approach to the use of DGS in a crisis.
Points of discussion
- Competitiveness, simplification and ringfencing
a) Does ringfencing still have a place in a time in which we seek for EU competitiveness, simplification and the completion of the Single market? In light of the simplification and competitiveness drives, what can the national or EU legislators do to increase trust and reduce the perceived need for ringfencing measures? Can the EU authorities help with practical actions in this endeavour?
b) How to further strengthen confidence and certainty in the EU crisis management framework?
c) Are the current levels of internal MREL still commensurate to the progress that we have collectively achieved in the level of integration achieved in the Banking Union? - Basel 3, MREL and competitiveness
a) From an international perspective, a long-standing debate has been that EU G-SIBs loss-absorbing requirement is higher compared to the TLAC requirement applied to US G-SIBs. Are the frameworks really comparable?
b) Do you expect Basel 3’s second round effect on MREL to have a relevant impact on European banks P&Ls and valuations? Should the EU legislator do anything about this second-round effect? - CMDI and fragmentationAnother area that still lacks an EU approach is the DGS use in a crisis. Given the status of the discussion, can CMDI still address the risk that non harmonized intervention of DGS leads to more fragmentation (and complexity) in the Euro zone Area? Can CMDI address the funding gap in resolution for medium sized banks without giving them an unfair advantage?