The EU will start to operate a single mechanism for resolving banking problems

Moscow. December 31. A single mechanism for resolving banking problems, the SRM begins to operate in full from 1 January 2016, said Thursday the European Commission.

“This means that now we have the system to solve the problems of banks and for spending on such decision, so taxpayers will be spared to bail out the banks if they go bankrupt. Errors banks will no longer fall on the shoulders of others,” said a member of the European Commission on financial stability and financial services Jonathan hill.

SRM, explain in Brussels, strengthen the stability of the financial system and avoid future crises, by providing timely and effective solutions to cross-border and domestic banks.

In the communiqué of the European Commission notes that the EU has taken important steps to address the root causes of the financial crisis to ensure a better capitalisation of banks and improved governance, and better identify risks that may arise in the system. But in spite of careful supervision and the emphasis on crisis prevention, says the EC, still there may be times when banks may be in a difficult position. SRM establishes a framework for member States participating in the Banking Union, which should be resolved banking problems.

The banking Union is mandatory for all Euro area countries and consists of 19 members: Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Finland, France and Estonia.

If member States joining the banking Union, says the European Commission, they must accede to the resolution mechanism.