Wednesday's Brussels (AP)-the European Union put forward the administrative department on bank regulation to ensure that taxpayer no more out of trouble collapse would be threat to broader economic ailing banking system.
According to the European commission proposal, do not constitute systemic risk states or the international economy, the bank will only be allowed to fail. But the failure is a very serious threat to the stability of the financial markets will support part of the unsecured creditor bank, bond holders and shareholders, and if need be, and not let taxpayers to the agency's rescue fund losses.
Responsible for internal market, the European Union commissioner Michael BaNiYe said: "we don't want taxpayers to pay," he outlined in Brussels on Wednesday the Suggestions. "We want to break the bank crisis and the connection between the public budget."
If he ever achieve, however, it will be too late, to alleviate the current financial crisis Europe and its largest economies, Spain, Banks are sitting on huge losses, the government can't plugin. It also provides no direct guarantee, the taxpayer out of trouble.
Sophisticated advice didn't make a reservation to 2018 years to fully effective. In any case, it also needs the 27 eu countries of the council of Europe and the leaders of the European parliament's approval in the approved process, can significantly change.
BaNiYe is in his stressed that he has many years' working suggestion, they are not in Spain or other recent bank rescue of the banking crisis response.
BaNiYe said, because many Banks multinational management, centralized rule is necessary, he did not put forward to establish a strong central banking institutions. Instead, his advice, will strengthen the ability of the state organs-hope-TouGuan bank failures happen before, decisively against them, when they do so.
"If we are to avoid in the banking crisis of the future, the member states must be equipped with the right tools, to take action, and not when it is too late," BaNiYe said.
All the country's banking regulators will use the same rules-rules, this will make them early intervention, require Banks to make recovery plan, or even fired bank management operation.
If a bank failure is coming, the state department will sell or merger of the power of the enterprise, create a temporary "bridge bank" to the basic functions, have to be separate from the bad fine assets, and write down the liability of the bank.
"" the resolution of the tool will ensure that basic function is out of trouble, institutions, and don't need to keep, the shareholders and creditors is liable for damages of appropriate, the committee to the suggestion of explanatory statement said.
The last part of the unsecured creditor-bank bear losses-called the "bailout" taxpayer funding in the treatment.
BaNiYe admitted that the proposal will not have an immediate effect, but he said, the European Union officials need to take short-term and long-term action to restore financial stability.
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