Fri, 4 April
15.1 C
Yerevan
USD: 391.32 RUB: 4.67 EUR: 432.53 GEL: 141.78 GBP: 514.27
spot_img

EU banking union gets final approval from MEPs: BBC

YEREVAN, April 16. /ARKA/. MEPs have backed rules for a banking safety net to minimise the risk of further EU taxpayer-funded bailouts.

A new European authority will have the power to wind up or restructure failing banks – the so-called Single Resolution Mechanism (SRM).

The shake-up of bank rules is aimed at preventing crises such as those which hit Greece, Ireland and Cyprus, whose banks were bailed out at huge cost.

In future creditors and shareholders will be first to pay when a bank fails.

The EU “banking union” reforms will create a 55bn-euro (£45bn; $76bn) fund, financed by bank levies, so that emergency cash can be injected into failing banks.

That rescue system will be advised by the European Central Bank (ECB). The 18 eurozone countries will participate in the SRM, though countries waiting to join the euro can also sign up to it.

Some analysts say that the rescue pot is too small, and that the eurozone still does not have credible backstops to deal with a major systemic failure like the 2008 financial crisis.

That crisis showed the risk of “contagion” when banks with cross-border operations got into trouble.
EU Financial Markets Commissioner Michel Barnier said the SRM “will allow for the timely and effective resolution of cross-border and domestic banks, over a weekend if necessary”.

He said the package of banking reforms “enshrines in binding rules the principle of bail-in, so that shareholders and creditors pay for banks’ mistakes, not taxpayers”. –0–

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Ranking of Armenia’s most profitable banks in 2024

ARKA news agency has released a ranking of the most profitable commercial banks in Armenia in 2024.

Arka news agency’s ranking of most profitable Armenian banks in 2019

In 2019, Armenia-based commercial banks earned a total of 78.8 billion drams in net profit, up from 56.4 billion drams they had earned in 2018, according to ARKA news agency's ranking of the most profitable commercial banks in the fourth quarter of 2019

Top ten Armenian banks by size of lending in 2019

In 2019, the overall loan portfolio of Armenia's banking sector grew by 16.4% to 3.572.2 trillion drams

LATEST NEWS

spot_imgspot_imgspot_img