The creditor hierarchy is changing, impact on EU banks and covered bonds.
With the March 2026 European Parliament vote, the update to the EU’s Crisis Management and Deposit Insurance (CMDI) framework which was formally launched in 2023 now draws to a close. With this update, the EU strengthens its framework for managing failing banks, and in particular introduces a full priority of customer deposits over senior unsecured debt when a bank becomes insolvent. The finalization of this process provides clarity on the future creditor hierarchy for EU banks. In the first part of the presentation, we will discuss the impact on deposits and senior unsecured debt ratings. In the second part of the presentation, we will assess the impact of failing banks on covered bond ratings, where issuers do not meet the requirements for resolution.
Please note that the presentation must not be shared.
