Revised Bank Crisis Rules to Protect Depositors and the Economy

Summary

• The Commission sent its proposal to the European Parliament and the Council on 19 April 2023 (document COM(2023) 226 final – 2023/0111 COD).
• The European Economic and Social Committee gave its opinion on 13 July 2023.
• The European Parliament adopted its first‑reading position on 24 April 2024.
• The Council adopted its position on 5 March 2026.

What the proposal does

• It is a package of four amendments to the Crisis Management and Deposit Insurance (CMDI) framework.
• One amendment was adopted separately as Directive (EU) 2024/1174.
• The other three amend Directive 2014/59/EU, Regulation 806/2014, and Directive 2014/49/EU.
• The goal is to better protect financial stability, taxpayers’ money, the real economy, and depositors, especially when smaller or medium‑sized banks fail.
• It allows resolution authorities to use funds from deposit guarantee schemes to finance a transfer strategy when a bank’s own loss‑absorbing capacity is insufficient.

Council’s position (agreed with the Parliament on 25 June 2025)

• Rules for using deposit guarantee scheme funds to access the Single Resolution Fund are similar to or stricter than those in Directive 2014/59/EU, ensuring the bank’s own loss‑absorbing capacity is used first and taxpayers are protected.
• The governance of the Single Resolution Board is strengthened by adding consultation obligations that involve national resolution authorities in its decision‑making.

Conclusion

The Commission supports the negotiated result and accepts the Council’s position at first reading.