Single Resolution Board

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SRB head office in Brussels

The Single Resolution Board (SRB) is an

euro area and as the institutional hub of the Single Resolution Mechanism
(SRM). Resolution is the restructuring of a bank by a resolution authority through the use of resolution tools in order to safeguard public interests, including the continuity of the bank's critical functions and financial stability, at minimal costs to taxpayers.

History

The SRB was established by the EU Single Resolution Mechanism Regulation of 2014. Its leadership was appointed in December 2014.[1] The Board became operational on 1 January 2015, with full assumption of its resolution authority on 1 January 2016.[2]

Its early development was supported by the European Commission. It moved to its current office on Treurenberg 22 in central Brussels in late 2015.

The initial activity of the SRB was largely about establishing processes and methodologies, particularly in the area of resolution planning.

In June 2017, the SRB took its first decision to take resolution action in the case of

Nova Ljubljanska Banka.[3]

Single Resolution Fund

The Single Resolution Fund (SRF) was established by the SRM Regulation. Where necessary, it may be used to ensure the efficient application of resolution tools and the exercise of the resolution powers conferred to the SRB by the SRM Regulation. The SRF is composed of contributions from credit institutions and certain investment firms in the 19 participating Member States within the Banking Union. It is being gradually built up during the period until 2023 included, and shall reach the target level of at least 1% of the amount of covered deposits of all credit institutions within the Banking Union by 31 December 2023.[4] By July 2023, the SRF had reached a size of €77.6 billion.[5]

Composition

Board members

The Board, in a narrow sense, is composed of six members : the SRB Chair, the Vice-Chair and four full-time Board Members. These four full-time Board Members as well as the Vice-Chair are responsible for SRB directorates.[6]

The composition of the Board has been, over time, the following one:[7]

National Resolution Authorities

The National Resolution Authorities (NRAs) participate in the SRB's plenary sessions, and in certain circumstances set out in the SRM Regulation, also occasionally in executive sessions. As of January 2024, they were the following:[9]

See also

Notes

  1. ^ "Banking Union: Parliament approves Single Resolution Board members". European Parliament. 16 December 2014.
  2. ^ "REGULATION (EU) No 806/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010". Eur-Lex.
  3. ^ "Sberbank Europe AG: Croatian and Slovenian subsidiaries resume operations after being sold while no resolution action is required for Austrian parent company". SRB. March 2022.
  4. ^ "What is the Single Resolution Fund?". Single Resolution Fund. 20 May 2016.
  5. ^ "Single Resolution Fund grows by €11.3 billion to reach € 77.6 billion". Single Resolution Board. 6 July 2023.
  6. ^ "Our organisation". Single Resolution Board. 14 December 2015. Retrieved 8 November 2022.
  7. ^ "The Board". Single Resolution Board. 25 May 2021. Retrieved 8 November 2022.
  8. ^ "Ready for the challenge – Dominique Laboureix takes up mandate as SRB Chair". SRB. 9 January 2023.
  9. ^ "National Resolution Authorities". Single Resolution Board.
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