Tasks & Tools

 Main Tasks
  • To draft resolution plans for the banks under its direct responsibility. This includes the banks under the direct supervision of the SSM and all cross-border groups
  • To carry out an assessment of the banks’ resolvability and to adopt resolution plans
  • To address any obstacles to resolution and cooperate on resolving them
  • To set the minimum requirements for own funds and eligible liabilities (MREL)
  • To follow up on early intervention measures
  • To trigger resolution (with the ECB)
  • To adopt resolution decisions, to choose and decide on the use of resolution tools
  • To closely cooperate with and give instructions to national resolution authorities
RESOLUTION TOOLS

When the Single Resolution Board adopts a resolution scheme, it also determines which resolution tools are to be applied.

  • Sale of business - allows for the total or partial disposal of the entity’s assets or liabilities
  • Bridge bank – parts or all of the business are transferred to a controlled temporary entity
  • Asset separation – assets the liquidation of which could cause market disruption can be transferred to an asset management vehicle
  • Bail-in – equity and debt can be written down, converted or bailed in, placing the burden on the shareholders and creditors of the bank, rather than on the public