This includes finalising the agreement on the European Stability Mechanism as a backstop to the Single Resolution Fund and ensuring an orderly and efficient exit of small and medium-sized banks in particular, by harmonising the powers to transfer assets and liabilities in liquidation with the support of deposit guarantee funds.
We also need to facilitate the flow of capital and liquidity within banking groups, subject to adequate financial stability safeguards and establish the third pillar of banking union – the European deposit insurance scheme.