660The current common framework for bank crisis management and national deposit guarantee schemes (CMDI) is tailored for banks which are considered too big (or too complex) to fail. Smaller banks are de facto excluded from the application of resolution, even though they are obliged to contribute to its functioning. In practice, not even the size element has been decisive and the crises of significant as well as less significant institutions have been managed at the national level instead of within the framework and conditions foreseen by the BRRD. The consequent and persistent fragmentation in the European financial market requires that the dichotomy between resolution and liquidation be overcome and that the scope of resolution also include smaller banks. The paper analyses the main reforms needed to achieve this goal, including the European Commission’s recent proposal to revise the CMDI.
Note
The paper has been written as part of the research project “Proportionating rules on bank crisis prevention and management to the case of retail banks: an analysis on the European and national legal framework” (Pro.Re.Ba.) –Progetti di ricerca di Rilevante Interesse Nazionale (PRIN) – 2022YXTHZF, financed by the Italian Ministry of University and Research. The paper greatly benefitted from comments and critics of Prof. Elisabetta Montanaro.
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