European Lawmakers Approve Banking Reforms

European lawmakers on Tuesday approved key laws reforming the euro zone’s banking sector, completing a “banking union” which will protect taxpayers from having to pay for costly bank bailouts in future.

“This new legislation stipulates what has to happen when a bank needs to be resolved, that (it) is wound down in an orderly fashion with a minimum impact on taxpayers and financial stability,” Gunnar Hökmark, a Swedish member of European Parliament (MEP) said in the Strasbourg plenary session.

The rules agreed at the European Parliament’s final session before European elections in May, are the culmination of a long process started after the 2009 financial crisis which saw banks across Europe require bailouts, often at the expense of taxpayers.

A deposit guarantee scheme, in which depositors will be guaranteed coverage of 100,000 euros in case of bankruptcy backed by funds to be collected in advance from the banking sector, was also given the green light.
via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza