- Fund to support bank resolution, paid for by the industry
- Every bank, big or small, operating across the 21-country Banking Union required to pay annual levy called a ‘contribution’
Today, the Single Resolution Board (SRB) announced the amount of contributions being made by banks to the Single Resolution Fund (SRF) for 2022. All banks in the Banking Union and some investment firms are required by law to pay annual levies into this emergency fund. For this year, banks are paying €13.7 billion into the SRF.
The target size of the SRF is set at 1% of covered deposits by the end of next year. The Fund will end up at around €80 billion, taking into account the current annual growth in covered deposits. The SRF can be used to support the effective resolution of a failing bank, if needed.
The SRF is just one of the tools of the financial stability structure that was put in place in the wake of the 2008/2009 banking crisis. It is being built up over eight years until 2023. The Fund will see its effective capacity approximately doubled when the public Backstop to the SRF is introduced.
“We continue to build up the SRF and it is on track to be fully stocked[1] next year. The growing capacity of the Fund, improves SRB’s ability to preserve financial stability and to protect tax payers from bail-outs. The backstop once in force will significantly increase the firepower of the Fund. This will go a considerable way to ensuring public money does not have be used to bail-out private investors,” said Jan Reinder de Carpentier, Vice-Chair of the SRB.
The SRF is made up of contributions from 2896 credit institutions and investment firms in the EU’s 21 Banking Union countries. These contributions are calculated according to EU law and collected via the national resolution authorities, with the money then being transferred to the SRF, which is managed by the SRB. Year-by-year collected funds in national compartments of the SRF are step-wise mutualised. Already over 90% of the funds are mutualised.
About the SRF
The Single Resolution Fund (SRF) is an emergency fund that can be called upon in times of crisis. It can be used to ensure the efficient application of resolution tools for resolving the failing banks, after other options, such as the bail-in tool, have been exhausted. The SRF ensures that the financial industry as a whole ensures the stabilisation of the financial system. All banks across the 21 Banking Union countries must pay a fee annually by law to the SRF. These fees are called contributions. The fund means that taxpayers are not first in line to pump money into a bank, should extra funding be required, since EU law requires all banks to pay into the fund annually. Find out more about the SRF here
[1] to reach 1% of the amount of covered deposits of all credit institutions within the Banking Union
Contact our communications team
Recent press releases

- The SRB publishes its second assessment of banks’ resolvability across the Banking Union
- Good progress made to date on key priorities and in building...

The European Central Bank and the Single Resolution Board have signed a Memorandum of Understanding (MoU) on the exchange of certain types of...

The SRB publishes today its MREL dashboard for Q1.2023. The MREL dashboard presents the evolution of MREL targets and shortfalls for resolution...
Related news and press releases

- 2023 marks end of ‘build-up’ phase of SRF
- Emergency fund, paid for by banks, can help resolve a failing bank
- Every bank, big or small, operating...

- Fund to support bank resolution, paid for by the industry
- Every bank, big or small, operating across the 21-country Banking Union required to pay...

The SRB has announced that it will launch a consultation process on the 2022 ex-ante contributions to the Single Resolution Fund (SRF) on 3 March 2022...