Banks, EU – Baltic States, Financial Services, Legislation, Lithuania

"The Bank Recovery and Resolution Directive will come into force in 2015. As the EU Presidency, Lithuania also did its job to further efforts regarding the directive, which aims to strengthen the banking union. The new mechanism will prevent the transfer of bank losses onto taxpayers' shoulders, as it happened during the crisis. The losses will be primarily imposed on a failing bank's shareholders and creditors. The EU states will have to build up deposit-guarantee funds by collecting levies from banks, which will cover the losses of the failing banks, when the shareholders run out of funds," said the Prime Minister.

The European Union has taken the reforms following the banking crisis during the economic downturn. The new rules are expected to establish a safer, more transparent and more responsible financial system and restore investor confidence in the wake of the financial crisis.