Rethinking the Resolution Tools for Distressed Banks: A New Challenge in the Banking Union?

This article argues that the introduction of new resolution tools for distressed banks in the banking union has not changed the recourse to public bail-out programmes: credit institutions rely on domestic financial support with the consent of EU institutions which seemed unprepared on how to decide on a suitable restructuring option for the bank in crisis. This article also observes that there is no harmonisation in the restructuring options and banks are anchored to the national supervision and domestic enforcement system.