As a result of the financial crisis, several EU Member States have introduced various forms of financial support and state guarantees for the banking sector.
To ensure a level playing field for all European banks, the Commission will soon present a proposal to establish a uniform framework for handling banks in distress within the EU. The aim of the proposal is to increase the possibilities for supervisory authorities to take preventive measures in order to avoid situations in which banks become distressed.
The proposal also contains a toolbox to help resolve banks in distress. This may relate to the sale of assets, the establishment of a "bridge bank" for the purpose of splitting up assets, writing down debt to creditors and internal asset transfers, etc. Finally, the proposal requires that resolution schemes be financed by the banks themselves.