It would enable prompt and coordinated resolution action, specifically where cross-border banks are concerned. For there to be a complete banking union there has to be a credible fiscal backstop. Any call on this backstop should be compensated ex post by levies on the financial industry. Indeed, the SRM is not about bailing out banks with public money.
In addition, with regard to forward guidance, the Committee said that, first, it intends to continue buying MBS and other assets until it sees a substantial improvement in the outlook for the labor market. 2 Second, the Committee stated that it expects a highly accommodative stance of monetary policy to remain appropriate for a considerable time after the economic recovery strengthens.