The CMDI is the EU's framework for Bank Crisis Management and Deposit Insurance. It's a set of rules designed to address bank failures, protect depositors, and ensure financial stability. A review, initiated in April 2023 by the European Commission, aimed to strengthen the framework, especially for smaller and medium-sized banks, while also reducing reliance on taxpayer funds. A package of new legislation was adopted in April 2026. Most of the new rules apply from May 2028.
AFME and its members continuously engaged with the European Commission, EU co-legislators and other relevant stakeholders to emphasise the need for the review of the CMDI framework to recognise that banks operating in the EU, especially Global Systemically Important Banks (G-SIBs) and large systemic banks, have made significant progress in recovery and resolution planning, raising Minimum Requirement for own funds and Eligible Liabilities (MREL) and enhancing resolvability. We have advocated that it is essential that any reforms to the resolution framework do not prejudice the progress already achieved, that the co-legislators be vigilant in avoiding unintended consequences of further reforms or any additional or increased contributions to Deposit Guarantee Schemes (DGS) or the Single Resolution Fund (SRF), especially for those banks compliant with the Bank Recovery and Resolution Directive (BRRD) requirements. AFME continues to engage with the relevant stakeholders on the implementation of the new rules.