The Handelsblatt discusses Sebastian Mack's proposal for a reform of the EU’s bank crisis management.
So far, the banking sector has hardly been affected by the Corona pandemic. Yet, a surge in loan defaults might put banks into serious trouble as early as next year. The EU is not well prepared for possible bank failures, our policy fellow Sebastian Mack warns. "To make bank resolution work, the current framework must become more credible and reliable", the Handelsblatt quotes from his latest policy paper. The mistakes of the great financial crisis should not be repeated when taxpayers' money went into bank bailouts, Sebastian Mack continues.