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The SRB in the Banking Union

What is the Banking Union?

In response to the recent financial crisis, the European Commission pursued a number of initiatives to create a safer financial sector for the Single Market. These initiatives form a Single Rulebook for all financial actors in the EU Member States. They include:

  • stronger prudential requirements for banks;
  • improved protection for depositors;
  • rules for managing failing banks

In addition to this Single Rulebook, there was a commitment by EU institutions to implement further measures step by step: shifting supervision to the European level, establishing a single framework for bank crisis management and setting up a common system for deposit protection.

 

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Resolution and the Banking Union

The SRM is one of the pillars of the Banking Union, alongside the Single Supervisory Mechanism (SSM). As of November 2014, the SSM is the new system of banking supervision in the Banking Union, comprising the European Central Bank (ECB) and national supervisory authorities of the participating Member States (National Competent Authorities).

The Single Resolution Mechanism is made up of the Single Resolution Board and the National Resolution Authorities in Eurozone countries, Bulgaria and Croatia. It protects financial stability and the taxpayer by planning for and managing bank failures. The SRM is the second pillar of the Banking Union, providing centralised and independent decision-making on bank resolution, ensuring that the public interest and critical economic functions are protected.

 

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Single Resolution Mechanism

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The Single Resolution Mechanism is made up of the Single Resolution Board and the National Resolution Authorities in Eurozone countries, Bulgaria and Croatia

National Resolution Authorities

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National Resolution Authorities (NRAs)

Governing bodies

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Depending on the tasks, the SRB convenes in different compositions

Cooperation

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The SRB works closely with Banking Union, European and internal authorities.

Addressed questions

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In line with the Single Resolution Mechanism Regulation, the SRB is accountable to the Council, the European Parliament and the Commission. Furthermore, the Board is required to reply to questions addressed to it by the European Parliament and [...]

Administrative Contributions

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Although the SRB is an independent EU agency, it is not publicly funded. Instead, banks operating across the Banking Union must pay an annual levy towards the running costs of the SRB.