european parliament approves \banking union\ reforms
Last Updated : GMT 06:32:30
Arab Today, arab today
Arab Today, arab today

European parliament approves \'banking union\' reforms

Arab Today, arab today

Arab Today, arab today European parliament approves \'banking union\' reforms

Strasbourg - AFP

The European Parliament approved on Tuesday the last elements of a new set of rules to prevent failing banks from ever again driving EU member states into bankruptcy.With 'banking union' passed, "we now have in place a true European system to supervise the eurozone banks and deal with any future failures," EU Financial Markets Commissioner Michel Barnier said.The system is also widely seen as essential for the monetary union of the euro single currency whose very existence came under threat as the debt crisis forced Greece and then Ireland and Portugal to seek massive international bailouts.At the height of the crisis in 2011-12, many in the financial markets were betting the euro would fail but a combination of savage and hugely unpopular austerity budgets and the state rescues just managed to hold the line.Banking union comprises a new oversight system known as the Single Supervisory Mechanism which becomes operational in November under the European Central Bank.It is complemented by a Single Resolution Mechanism which will, when advised by the European Central Bank, step in to stabilise or close down a bank before it can do any wider damage to the economy.However, the International Monetary Fund warned last week that in its view more work was needed because the procedures appeared too cumbersome to ensure a rapid solution if a bank threatened the financial systemA fund ultimately worth 55 billion euros ($76 billion) and paid for by a levy on the banks themselves will cover the cost of any closures.Similarly, customer deposits will be guaranteed up to 100,000 euros, with the banks also required to meet this commitment by setting aside enough reserves.The banks have been blamed by many for reckless speculative lending and investments which helped drive the financial and then economic crash beginning in 2008.Countries such as Ireland which tried to keep their failing banks afloat, were pulled down too when the extent of their debt overwhelmed government finances and forced it to seek an international bailout.Now lenders must comply with stricter rules of conduct and capital levels, designed to limit the amount of risk they can take on and to ensure that shareholders and creditors shoulder the cost of any rescue, not the taxpayer.- End to taxpayer bailouts -"The EU has lived up to its commitments: the banking union completes the economic and monetary," Barnier said in a statement.It also "puts and end to the era of massive bail-outs and ensures taxpayers will no longer foot the bill when banks face difficulties," he said.MEPs passed the measures in the last plenary session before May elections, completing a tortuous and hard-fought process.European Union leaders had wanted to retain a large measure of control over their banks and so agreed a system whereby member states would have the final word on any closure. Parliament said this allowed undue political influence in a decision which needed to be taken quickly so as to keep ahead of the financial markets.The two sides finally reached a compromise last month, allowing for a faster decision-making process and clearing the way for Tuesday's vote.The measures passed limit member state "influence and political pressure significantly to allow more fairness, speedier action and lower costs to resolve bank problems," a parliamentary statement said.European Parliament head Martin Schulz said the outcome was "a major victory."The assembly had "succeeded in fighting off the illogical pressure of some countries during the negotiations," he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

european parliament approves \banking union\ reforms european parliament approves \banking union\ reforms

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

european parliament approves \banking union\ reforms european parliament approves \banking union\ reforms

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday