The European Union's body for dismantling failed banks said on Wednesday it would ratchet up pressure on lenders over the coming months to bolster their defenses so that none remain "too big to fail" by January 2024.
The Single Resolution Board (SRB), in its first "heat map" on progress in preventing failing banks from needing a taxpayer bailout, said that the shortfall in special debt issuance by banks to replenish burnt-out capital was down to 32.6 billion euros or 0.45% of the total risk exposure.
The SRB is the main resolution authority for banks in the 19-country euro zone, along with Bulgaria and Croatia.
While most banks have met their target for issuing the special debt known as MREL, the SRB said some lenders still need to improve other elements which ensure smooth "resolution" or winding down if they go under.
"We have seen good progress by all banks, spearheaded by the largest banks. At the same time, we also see clearly the areas that require further attention in 2022 and 2023," SRB Chair Elke Koenig said in a statement.
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