EU banks face bumpy ride under next European Commission

20 August 2019 7:44pm
Banks under the next European Commission could face a new bankruptcy framework, more than 100 billion euros ($110 billion) in extra capital requirements, a rejig of securitization rules, new EU powers to cap risky mortgages, and more intense competition for customer loyalty.

On paper, the main banking priority of incoming commission president Ursula von der Leyen is business as usual, finishing the work of her predecessor to finalize a common EU deposit protection fund. In reality, that job will largely be for the EU’s member states, who have been stuck in talks on the issue for many years with little sign of movement. That impasse seems unlikely to be resolved any time soon.

Perhaps more significantly, Von der Leyen says she also wants a “robust” framework to wind up failing banks, in the political guidelines she published on July 16.