The revision of the banking crisis management and deposit insurance framework in Europe : why is it important to enhance flexibility?

The Crisis Management and Deposit Insurance Framework - which came into force about ten years ago - is under review by the European Commission. The need for its revision stems from the identification of certain shortcomings and inconsistencies that have emerged in its application in Europe and especially in Italy. The central topics of the debate focus on how resolution should be applied and on possible innovations regarding the tools that can be used to manage the crises of small and medium-sized banks, which until now have been managed on the basis of procedures and tools decided at the national level.