(Adds more detail)
LONDON, March 1 (Reuters) - The European Union's body
for winding down failing banks said on Wednesday it would begin
on-sight inspections of leading euro zone lenders to check they
can be wound down without taxpayer aid in a crisis.
The Single Resolution Board was set up after taxpayers had
to bail out lenders during the global financial crisis in
2007-09.
Its first phase was to require banks to have "resolution"
plans setting out how they could recover from a crisis, or be
wound down smoothly without public aid.
Dominique Laboureix, newly-appointed chair of the Single
Resolution Board, told the European Parliament that the
watchdog's "second phase" for 2024-2028 would focus on whether
the plans were likely to work in practice.
"We will undertake a strategic review this year," Laboureix,
a former French banking regulator, told parliament's economic
affairs committee.
"While in phase one the focus was rightly on putting
resolution plans into place, in the coming years the SRB must
shift its focus to make sure that resolution plans can be put
into practice effectively," Laboureix said.
"This means testing and checking that the resolution plans
actually work in... simulation. This means having on-site
inspections at banks' premises," he added.
(Reporting by Huw Jones; Editing by Raissa Kasolowsky and Alex
Richardson)
Messaging: huw.jones.thomsonreuters.com@reuters.net))
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