EU Bank-Failure System Needs Uniform Insolvency Law, Koenig Says
- SRB's Koenig calls for more clarity on creditor hierarchy
- Visco says imposing losses may have systemic, contagion risks
This article is for subscribers only.
European Union policy makers need to standardize insolvency laws across the bloc if new bank-failure rules are to work effectively, according to Elke Koenig, head of the euro area’s central resolution authority.
“We need to consider that insolvency law is the basis for our work,” Koenig said at a conference in Frankfurt on Monday. “This is definitely an area to look into, and an area where we need to have more achievements.”