Early Intervention in Banking Crises: Challenges and Prospects of Reform in the Banking Union

The difficulties faced by the Members of the European Union during the 2008 Global Financial Crisis and the Eurozone Crisis in 2012 called attention to the compelling need for a consolidated regulatory framework to address vulnerabilities in the banking sector. Since then a series of regulations and directives, including the Banking Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism Regulation (SRMR), have been implemented to strengthen both the supervisory and crisis management framework. This thesis examines Early Intervention Measures (EIMs) as delineated in Articles 27-30 of the BRRD and their implementation across the Banking Union. The analysis then focuses on the Banca Carige case, highlighting critical issues in the current framework. Subsequently, attention shifts to the European Commission's proposal that would reform significant profiles of Early Intervention, bringing significant improvements.