New EU rules on bank crisis management and deposit insurance (Part 1) (April 2026)
Client Briefings
Introduction
Share
The EU has adopted a package of new legislation making wide-ranging changes to the EU framework for bank crisis management and deposit insurance (CMDI). The new rules aim to make it easier to resolve failing smaller and medium-sized banks but will affect all EU banks. Most of the new rules apply from May 2028.
This briefing reviews the background to the legislative package and discusses the changes to the resolution regime, resolution funding, early intervention powers, the minimum requirement for own funds and eligible liabilities, recovery and resolution planning and the Single Resolution Mechanism.
A second briefing on the package discusses the changes to depositor preference in winding up, the scope of deposit insurance and other rules for deposit guarantee schemes and considers the impact on bank contributions to industry-funded backstops, possible areas for future development and the actions that EU banks may take in response to the package.
