Resolution Objectives

When applying resolution tools and exercising resolution powers, the SRB and, where relevant, NRAs,  take  into  account  the  resolution  objectives,  and  choose  those  resolution  tools  and  resolution powers which best achieve the pertinent resolution objectives.

The BRRD and the SRMR set the following resolution objectives:

  • to ensure the continuity of critical functions;
  • to  avoid  significant  adverse  effects  on  financial  stability,  in  particular  by  preventing  contagion, including to market infrastructures, and by maintaining market discipline;
  • to protect public funds by minimising reliance on extraordinary public financial support;
  • to  protect  depositors  covered  by  the  Deposit  Guarantee  Scheme  Directive  (DGSD)  and  investors covered by the Investor Compensation Scheme Directive (ICSD);
  • to protect client funds and client assets.When pursuing the resolution objectives, the SRB and, where relevant, NRAs will seek to minimise the cost of resolution and avoid destruction of value unless necessary to achieve the resolution objectives.