The Single Resolution Board today announced that the Single Resolution Fund received an increase of €9 billion from 3,066 institutions for the year 2020. This brings the total amount in the SRF to approximately €42 billion.
“The Fund is being steadily built up and we are well on our way to reaching our target. The SRF is a significant part of our toolbox as a safeguard for financial stability,” said SRB Chair Elke König.
The target size of the Single Resolution Fund (SRF) is set at 1% of covered deposits by end 2023. The Fund will end up at close to €70 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 made up of contributions from credit institutions and certain investment firms in the 19 Banking Union countries. These contributions are calculated according to EU law and collected via the national resolution authorities.