Bank Failure and Resolution in the EU: Lessons for the Crisis Management and Deposit Insurance Framework

Sebastián Royo, Ewa Miklaszewska, Giovanni Ferri (Editors)

ISBN: 9781041219507

Published: August 2026

Format: Hardcover

Language: English

Publisher: Routledge

Description

Financial crises expose weaknesses in risk management, regulation, and supervision. The 2008 crisis showed the systemic nature of banking failures and the high cost of taxpayer-funded bailouts, pushing the EU to build the Banking Union and the Bank Recovery and Resolution Directive (BRRD) to reduce reliance on public funds and address "Too Big to Fail." But the framework has proven weaker for small and medium-sized banks, and recent stress episodes have exposed inefficiencies now being addressed through the Crisis Management and Deposit Insurance (CMDI) reform. This book examines lessons from past bank failures and evaluates the EU's post-2008 resolution regime through conceptual analysis and empirical case studies from Europe and the United States.

Key Features

• Combines conceptual analysis of systemic risk and the Too Big to Fail dilemma with real case studies
• Covers major EU resolution cases including Banco Espírito Santo, Banco Popular Español, Monte dei Paschi di Siena, and MKB Bank Hungary
• Evaluates the practical challenges of liquidity provision and deposit-insurance fragmentation exposed by recent stress episodes
• Assesses whether the CMDI reform will actually work for small and medium-sized banks, not just large ones
• Draws direct comparisons with the FDIC's handling of the 2023 US banking crisis

Coverage

The volume moves from the lessons of the Global Financial Crisis and Euro Sovereign Crisis, through the US FDIC's 2023 resolution experience, into the rationale for CMDI reform and whether it solves the TBTF problem for smaller banks. Detailed case chapters cover Banco Espírito Santo and BANIF (Portugal), Banco Popular Español (Spain), Monte dei Paschi di Siena (Italy), Getin Noble (Poland), MKB Bank (Hungary), and Polish cooperative bank resolutions, closing with a comparative chapter on SRB and national resolution authority practice.

About the Editors

Sebastián Royo is a Professor of Political Science at Clark University in Worcester, Massachusetts. Ewa Miklaszewska is a Professor of Finance and Chair of the Department of Banking and Global Financial System at Cracow University of Economics, Poland, and a member of the Management Committee of the European Association of University Teachers of Banking and Finance. Giovanni Ferri is a Professor of Economics at LUMSA University of Rome, and formerly worked at the World Bank and at Banca d'Italia's Research Department.

Why buy this book?

The CMDI reform is now moving from policy debate into implementation, and this is the first volume to test the EU's post-2008 resolution architecture against a full run of real cases — not just the large, well-known ones, but the smaller regional and cooperative banks where the framework has been most exposed. For anyone advising on banking union, deposit guarantee schemes, or resolution planning, it's a working reference rather than a theoretical overview.

Keywords

bank resolution, EU banking union, deposit insurance, crisis management, CMDI directive, Too Big to Fail, bank recovery and resolution directive, systemic risk, deposit guarantee schemes, banking supervision

Target Audience

Scholars, researchers and advanced students in banking, finance and regulatory economics, and regulators, policymakers and professionals working in central banks, supervision authorities, resolution agencies and deposit guarantee schemes

Genre

Bank Resolution, Financial Regulation, European Union Law

Q&A

Q: Does the EU's bank resolution framework actually work for small and medium-sized banks?
A: The book argues that while the post-2008 framework has made real progress, it has proven less effective for small and medium-sized banks — one of the central problems the CMDI reform is meant to address, and one this volume tests directly against case evidence.

Q: What real bank failures does this book analyse?
A: It covers Banco Espírito Santo and BANIF in Portugal, Banco Popular Español, Monte dei Paschi di Siena, Getin Noble in Poland, MKB Bank in Hungary, and several Polish cooperative bank resolutions.

Q: How does EU bank resolution compare with the US approach?
A: A dedicated chapter examines the FDIC's handling of the 2023 systemic crisis episode in the US, giving a direct comparative reference point against the EU's BRRD-based framework.

Q: What is the CMDI reform and why does it matter?
A: The Crisis Management and Deposit Insurance reform is the EU's response to inefficiencies exposed by recent stress episodes, particularly around liquidity provision and deposit-insurance fragmentation for smaller banks. The book sets out the rationale behind it and tests whether it delivers.

Q: Where can I buy Bank Failure and Resolution in the EU?
A: Directly from CLNZ Books, with worldwide shipping and institutional invoicing available.

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