Oireachtas Joint and Select Committees
Thursday, 5 February 2015
Committee of Inquiry into the Banking Crisis
Context Phase
Mr. Mario Nava:
The Deputy is referring to the communiquéon 29 June 2012, which launched the banking union. On that date, the Heads of State and Government called for a breaking of the links and on 12 September, nine weeks later, the Commission put a proposal on the table for the single supervisory mechanism. So, over eight weeks during the summer we were able to produce what was asked for. We have taken major steps to break the links between banks and sovereigns. I would point to at least three: greater capital in the banks, the Single Supervisory Mechanism, and the Single Resolution Mechanism and the possibility of using bail-in tools to avoid any possibility of a link between the two again.
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