News

Yesterday the European Parliament’s Economic and Monetary Affairs committee voted on the legislative proposal for a single resolution mechanism (SRM).

UNI Europa Finance’s passed amendments would secure that procedures for informing and consulting with employees or their representatives throughout the resolution process are safeguarded. Collective agreements, or other arrangements provided for by social partners, are also to remain applicable in the process.

Further, when employees are asked to disclose information to the board, this information should never be seen as a breach of professional secrecy.

UNI Europa Finance is very pleased with the vote. Employees play a crucial role in getting a bank up and running again and should be treated with respect in the process.

The SRM is the second step of the Banking Union, complementing the Single Supervisory Mechanism. The SRM will ensure that bank creditors and investors will pay their share of a failing banks’ liabilities through a single bank resolution fund, instead of the bank being supported by national governments (the so-called “bail in” mechanism).

The SRM is linked to the directive on bank recovery and resolution (BRR) which was finalised in trilogues between the European Parliament and the Council on 11 December with the amendments in the SRM being mirrored in the BRR.

The next step in the process is the European Parliament plenary vote foreseen for 11 March, 2014.

For more information on the SRM procedure file, click here.