In this vein, measures have been taken to upgrade deposit insurance, as I said earlier, to strengthen capital requirements and to reform the EU infrastructure to prevent crises. Yet, a framework to enable authorities to control the impact of a failing cross-border financial institution is still missing.
Therefore, mindful that the costs of uncoordinated national resolution increases with the degree of interconnectedness and integration of financial institutions, last month, the EC issued a communication proposing the building blocks of an EU framework for cross-border crisis management in the banking sector.