As the SRB enters phase two of its existence, SRB Chair Dominique Laboureix shares his reasons for launching a strategic review of how the SRB works, which will feed into a new plan for Europe’s central, independent resolution authority.
Two months ago, I took up my mandate as Chair of the Single Resolution Board. It’s a challenge I relish, and events of recent days show just how important it is that a resolution authority with a sound framework exists in Europe.
Starting with just a vision for resolvability, the SRB and the national resolution authorities, which together make up the second pillar of the Banking Union, have achieved much in the past eight years. The focus since 2015 was on the construction phase of the resolution framework. That phase is now well advanced, as later this year the SRB will reach key milestones in resolution planning and the build-up of the Single Resolution Fund.
The coming years will see a shift in gear at the SRB. We will focus much more on things like testing existing resolution plans and going on site to banks premises, to ensure that each bank would be organised in a way which facilitates its resolvability, were we to have to resolve that bank. In other words, being crisis-ready will be front and centre on our priority list. Together, we must tackle new challenges and realities, such as cyber risks, digital finance, climate change and the current macro-economic outlook. The time is right for the SRB to enter into its second phase of existence. So, naturally, the time is right for a new vision for the SRB and how it operates.
To develop and realise that new vision, I want to understand how to best organise the SRB, I want to see how the SRB could function and deliver better, I want to take into account the expectations our main stakeholders have regarding the SRB. That is why we will undertake a strategic review this year. We will listen to, and engage with our staff, the wider SRM community as well as industry.
Then, we will develop a new action plan to take the SRB from 2024 until 2028. This will better-equip the SRB to deal with the various challenges, to ensure banks can be resolved.
In particular, I am looking to identify ways we can strengthen cooperation, transparency and communication with the banking sector. I am asking for industry’s views on how we operate and how we might improve. Resolution planning is a vital component of financial stability – but so too are healthy, efficient and profitable banks. If there is something we can do to improve the flow of information for example, we will do it.
Finding ways to cooperate with industry efficiently and transparently is a priority for me. I’m asking banking associations and federations to give us their feedback and ideas.
I am aiming to have our new strategy in place by the end of the year. Then, we will work on launching our actions to drive the SRB forward and help promote financial stability. I count on industry and stakeholder input in this important review and I look forward to continued and improved cooperation in the months and years ahead of us.
During the recent economic shocks caused by the Covid-19 pandemic and the more recent inflation surge, the EU banking system proved resilient and continued to provide lending to the real economy. In addition to the support provided to the economy by the...
Dominique is Chair of the Single Resolution Board after being appointed officially by the Council on 25 November, 2022.
Dominique Laboureix formerly held the position of Secretary General of the French Prudential Supervisory Authority (Autorité de Contrôle Prudentiel et de Résolution - ACPR), to which he was appointed in October 2019. ACPR is the administrative authority chaired by the Governor of Banque de France...