Mon, 28 July
22.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

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

Fitch expects inflation in Armenia to remain within the target level until 2027

International rating agency Fitch expects inflation in Armenia to remain within the target level until 2027, although soft fiscal policy and the projected moderate weakening of the dram create certain risks.

Fitch forecasts Armenia to tighten fiscal policy after 2027

Fitch Ratings analysts forecast a tightening of fiscal policy by the republic's authorities in a new report on Armenia.

A scheme for stealing funds through fake investment platforms  exposed in Yerevan

A criminal group operating in one of the capital's business centers and stealing citizens' money through Internet calls has been exposed in Armenia, the Investigative Committee of Armenia reports.

 Law on Cryptoassets enters into force in Armenia

The Law on Cryptoassets entered into force on July 4, 2025, the press service of the Central Bank of Armenia reports.

Armenian Market: Acceleration of Economic Activity is Positive for the Market

In the period from June 16 to June 30, 2025, the Armenian stock market demonstrated mixed dynamics.

LATEST NEWS

spot_imgspot_imgspot_img