A common European bank resolution scheme would have
to be targeted and piecemeal or not at all, says Centre for
European Policy Studies (CEPS) CEO Karel Lannoo.
Rather than attempting to harmonise
insolvency procedures Europe-wide, Europe should be looking at
harmonising bits and pieces, he said.
An approach might be to use subordinated debt
such as CoCos, for example, for this purpose. It could be
triggered at exactly the same point all over Europe to invoke
intervention by supervisory authorities.
This approach could be implemented by the new
European Banking Authority (EBA), he added.
If Basel III comes through at the European...