This is precisely why independence as a protection against interference is so important. A central bank should be able to act independently of a politically desirable or politically undesirable distributional effect and concentrate solely on maintaining monetary stability.
The establishment of the Single Resolution Mechanism in the EU will facilitate the resolution of cross-border banks. Importantly, the resolution framework gives the power to authorities to promptly implement a “bail-in” of bank debt holders when a bank goes into resolution. Banks will have to have a minimum of 8% of their liabilities eligible to bail-in.