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Concluding remarks to the 2nd SRB Legal Conference by Single Resolution Board Vice Chair, Jan Reinder De Carpentier


[Check against delivery]

This morning, Dominique mentioned that the reforms of the CMDI review are good, even if not perfect. Let me reiterate his message: the CMDI reforms are something we very much welcome at the SRB. And even if the resolution framework overall in Europe is not a perfect one, it is miles ahead of the framework, or rather the non-existent framework, that we had in 2008. Nothing in this world is perfect, but we can overcome imperfections by being pragmatic and practical to reach our goal.

That goal is to be able to resolve any troubled bank without having to use taxpayers’ money. I am pleased to say that we have been able to do that to date.

In the eight years since the SRMR entered into force, we have made real progress.

The SRB has successfully adopted resolution decisions concerning two banks – Banco Popular and Sberbank Europe. We have also adopted four non-resolution decisions. However, these cases also have shown the many challenges in relation to the implementation of this legal framework as well as the elements that could be improved.


Today’s discussions from today’s panels highlighted challenges and triumphs we encounter in achieving financial stability.

I want to mention a few points that stood out for me from our panels today. 

[Highlights from the panels]

In our first panel, we discussed one of the main challenges in our daily work: the lack of harmonised corporate and insolvency legal frameworks in the EU. For example, the creditor’s hierarchy in the context of a resolution action may vary between jurisdictions as recent events have shown. However, the discussion also showed the efforts being made by the SRB to overcome these difficulties, such as in the implementation of SPE. We also saw that as time passes, as the jurisprudence of the EU’s Court of Justice has developed, the framework has been strengthened and clarified, especially when it comes to the Single Resolution Fund. Clarity and certainty are fundamental principles in creating law, but they are also fundamental in achieving financial stability.

Overall, both the framework and the actions of the SRB have withstood the judicial scrutiny of the Court of Justice. Last June we received the judgments of the General Court, stating the SRB acted within EU law, when we resolved Banco Popular back in 2017. All of this is good news, and while our legal framework is still young, it is maturing.


In our second panel, we have seen a vivid discussion on the interaction of the resolution framework and fundamental rights. Questions such as our duty to state reasons, the right to be heard, the right to conduct a business, the right to property, and proportionality, have been discussed.

Perhaps some food for thought emerging from discussions today, is how to achieve the right balance between achieving resolution objectives and respecting the fundamental rights of the parties concerned? Questions that cannot be answered in a day perhaps, but nevertheless, questions worth bringing to the fore. 

This brings me to the third and final panel and the question of cross border bank resolutions. Recent events have shown that in the current globalised market, the failure of small regional bank can create significant contagion risks worldwide. A quick reaction in this situation is essential. In this context, cooperation among resolution authorities is key. Indeed, we must work on building relationships of trust and confidence with our partners at national, EU and international level.

For me, I think this afternoon’s discussions highlight the need for cooperation agreements, since they can bridge the gap and increase the effectiveness of cross-border resolution. The SRB is committed to such cooperation. Already, we have signed cooperation agreements all six EU countries who are outside the Banking Union, and 17 other third countries – and more will follow.  

Cooperation through the SRM’s Legal Network , and forums such as Crisis Management Groups and Resolution Colleges are also vital in cross-border cooperation.


Ladies and gentlemen, I am coming to a close.

Today’s conference is not about talking for the sake of talking. Recent events have shown that ensuring financial stability and the proper implementation of our resolution framework is not an easy goal. It is through dialogue and discussion and the sharing of our experiences to date, that we can – all of us here – offer new ideas to improve the banking resolution framework. These exchanges are even more important today, where recent events have shown that close cooperation is key for the preparedness and success in our mission.

Thank you again for your participation and my thanks also to the SRB teams involved in putting together today’s event.

Have a nice afternoon. 

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