Banque de France Bulletin

Resolution of banking crises: where does Europe stand?

Published on the 3rd of December 2024

Banque et assurance

Bulletin No. 254, article 3. The European Union escaped the series of bank failures that shook Switzerland and the United States in the spring of 2023. While the soundness of European banks depends on regulation and active supervision, the resolution regime provides the authorities with unified instruments for managing similar crisis situations in Europe. The authorities thus have the power to get failing banks back afloat or arrange for them to be taken over by other banking institutions, calling on investors rather than taxpayers. 

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Updated on the 3rd of December 2024