Council of the EU Publishes Progress Report on Commission’s Initiatives to Strengthen the Banking Union

On November 29, 2017, the Council of the EU published a report on the progress of the European Commission’s initiatives to strengthen the banking union, including the proposed Regulation establishing the European deposit insurance scheme (EDIS) (14932/1/17).

The report provides an overview of the progress of the Commission’s banking reform legislative package, adopted in November 2017, and also refers to a progress report from the Presidency of the Council on the progress of the EDIS Regulation.

This progress report highlights several issues which are currently under discussion with the European Council. Such issues include:

  • alternative measures to prevent the failure of credit institutions;
  • the methodology for calculating risk-based contributions;
  • the scope of EDIS and the inclusion of branches of third-country credit institutions established in a member state and of non-CRD IV deposit-taking entities that are covered by existing deposit guarantee schemes (DGSs);
  • non-compliance by DGSs and the procedure for the disqualification; and
  • the design of EDIS, including the merits of the full insurance and reinsurance models.

The progress report is available here.