This paper analyses the 2023 US banking crises in order to draw possible lessons for the framework for prudential supervision and the system for crisis management in the EU. It examines the causes of the crises, the propagation mechanisms, and the policy responses of the authorities; a comparison is made with other past banking crises. Finally, the paper examines the pros and cons of an increased level of deposit protection in the EU.
The paper underlines that: the crises of banks not labelled as systemic may also pose risks for the system as a whole; financial stability could be undermined by an incomplete application of the internationally agreed prudential standards; targeted revisions of the EU prudential rules could be assessed and, with reference to specific aspects, the degrees of flexibility in the EU system for crisis management could be widened.
