Failing banks: EPP Group achieves better protection of taxpayers’ money

“Those who own a bank or invest in a bank have full responsibility, even in bad times. This is the principle we implemented today in the European banking regulation”, said Gunnar Hökmark MEP, Parliament’s Rapporteur on the new loss-absorbing and recapitalisation rules for banks after today’s vote.

The new rules are part of a comprehensive banking regulation package which was adopted today. “We are making banks more resilient and creating a clear roadmap for banks to deal with losses without having to resort to taxpayer-funded bailouts”, explained Hökmark.

“This is today’s message to everyone: there are risks when investing in a bank. And when a bail-in is necessary, this happens in a foreseeable and certain way”, Hökmark said.

Hökmark also sees a disciplining effect in the new law. “The new rules also mean that the markets will be much more alert and will avoid banking going into crisis”, he said.

“The new law has been well thought through as it sets requirements on banks but at the same time also ensures that banks can play an active role in financing investments and growth”, Hökmark concluded.