Crisis management and deposit insurance (CMDI) reform package – What you need to know

On 18 April 2023, the European Commission published proposals for further amendments to the European bank recovery and resolution regime. These proposals, which had been under development for some time, were accelerated in light of recent bank failures. The proposed amendments include: 

  • introducing equal preferential ranking on insolvency for all deposits;
  • measures to make the resolution of small and medium-sized banks clearer and simpler to implement;
  • certain changes to the MREL regime; and
  • provisions under which deposit guarantee scheme funds could be used for alternative resolution action, such as contributing to the cost of transferring assets and deposits to another bank, in certain circumstances.

Please read our Q&A document for more detail on the proposals.