New Rules to Keep Banks Safe and Protect Deposits

Commission communication to the European Parliament (COM(2026) 123 final, 2023/0112 COD)

Background

• Proposal sent to Parliament and Council: 19 April 2023.
• European Economic and Social Committee opinion: 13 July 2023.
• First reading in Parliament: 24 April 2024.
• Council adopted its position: 5 March 2026.
• Agreement between Parliament and Council reached: 25 June 2025.

Objective of the proposal
The Commission proposed four amendments to reform the Crisis Management and Deposit Insurance (CMDI) framework.

• One amendment to Directive 2014/59/EU on own‑funds requirements was adopted separately as Directive (EU) 2024/1174.
• The other three amendments target Directive 2014/59/EU, Regulation (EU) 806/2014, and Directive 2014/49/EU.

The goal is to:

• Protect financial stability and taxpayers’ money.
• Shield the real economy from bank failures.
• Strengthen protection for depositors.

The main tool is to let resolution authorities use money from deposit‑guarantee schemes to fund a transfer strategy when a bank’s own loss‑absorbing capacity is insufficient.

Council’s position (as adopted at first reading)
The Commission agrees with the Council’s stance, which reflects the 25 June 2025 agreement. Key points:

• A bank must be resolved if any resolution objective is at risk and winding up would not achieve the objectives more effectively.
• The test for using deposit‑guarantee scheme funds is simplified: the intervention is capped at the gross amount of covered deposits, keeping the priority of covered deposits in a three‑tier creditor hierarchy.
• Rules for using these funds include clear sequencing, safeguards, and burden‑sharing, ensuring the bank’s internal loss‑absorbing capacity is used first and taxpayers are protected.

Conclusion
The Commission supports the inter‑institutional negotiations and accepts the Council’s position at first reading.