Elke König told Maltese MEP Alfred Sant that smaller and less complex banks compared to the big international banks will not be subject to the same plans of a new body which will be responsible for winding down failed Eurozone banks. König was addressing the Economic and Monetary Affairs Committee of the European Parliament when the Maltese MEP asked her whether she would feel stronger in dealing with problems of banks from Malta or Cyprus, but would be more cautions when dealing with big banks from Germany or France. Ms König is the sole candidate to become head of the Single Resolution Board (SRB).
‘How confident am I that the political pressure will not be felt different, when it comes to small versus larger countries, or small versus larger banks? I think we are committed to the European clause and to a level playing field, which for me means proportionality also in resolution planning. You don’t need the same plan for fairly smaller, less complex banks that you might need for the big banks, very international banks but clearly the system holds through for everyone, including if need be, if you have to unwind the banks.’ Elke König told Alfred Sant.
The Single Resolution Board (SRB) will be based in Brussels and will be “fully operational” from 2016.
Press this link to view the full intervention of Alfred Sant and Elke König.