The Single Resolution Board's Mission
The SRB is the central resolution authority within the Banking Union. Together with the National Resolution Authorities (NRAs) of participating Member States (MS), it forms the Single Resolution Mechanism (SRM). The SRB works closely with the NRAs, the European Commission (EC), the European Central Bank (ECB), the European Banking Authority (EBA) and national competent authorities (NCAs).
Its mission is to ensure an orderly resolution of failing banks with minimum impact on the real economy, the financial system, and the public finances of the participating MS and beyond.
The role of the SRB is proactive: rather than waiting for resolution cases to manage, the SRB focuses on resolution planning and enhancing resolvability, to avoid the potential negative impacts of a bank failure on the economy and financial stability.
The Single Resolution Board's Vision
Established by Regulation (EU) No 806/2014 on the Single Resolution Mechanism (SRM Regulation), the SRB has been operational as an independent EU Agency since January 2015. The SRB strives to become a trusted and respected resolution authority with a strong resolution capacity and the ability to act swiftly and in an appropriate, consistent and proportionate manner in establishing and enforcing an effective resolution regime for banks in the SRM jurisdiction, thus avoiding future bail-outs.
The role of the SRB is proactive: rather than waiting for resolution cases to handle, the SRB focuses on resolution planning and preparation with a forward-looking mindset to avoid the potential negative impact of a bank failure on the economy and on financial stability. The SRB aims to become a centre of expertise in bank resolution.
The SRB's Values
The SRB strives to be a trusted and respected resolution authority with a strong resolution capacity in the SRM, thus avoiding future bail-outs. The SRB aims to be a centre of expertise in bank resolution. Its three values are (i) Excellence in Resolution, (ii) Integrity and (iii) EU Spirit.
The SRB’s Operating Structure
The Chair is responsible for, inter alia, the management of the SRB, its budget, preparing the work of the SRB in its Executive and Plenary Sessions, all staff matters, and matters of day-to-day administration. The Vice-Chair and the four full-time Board Members are responsible for individual directorates:
- Directorate A Resolution Strategy and Cooperation provides resolution expertise, including expertise related to financial stability analysis, and aims to ensure a common understanding within the SRM of horizontal and policy topics; in general, this Directorate also manages the SRB’s cooperation with its stakeholders, like the EC and the ECB;
- Three directorates (Resolution Planning and Decisions B, C and D) are directly responsible for preparing resolution plans and, if necessary, resolution schemes for the banks within the SRB’s remit, in cooperation with NRAs within the forum of Internal Resolution Teams (IRTs). As a general rule, each directorate covers specific countries;
- The Vice-Chair is responsible for Directorate E Corporate Services and the Single Resolution Fund. This directorate manages functions such as Human Resources, Information Technology, Finance and Procurement and Facilities, and is responsible for raising contributions to, as well as managing and investing the resources of, the SRF to ensure, if need be, the effective application of the resolution tools;
- Additionally, in the performance of her tasks, the Chair is assisted by a dedicated staff. In this regard, the General Counsel and Corporate Secretariat, the Policy Coordination and International Relations unit, the Communications team, Internal Audit and Accountant all form independent units within the SRB, reporting directly to the Chair.
Main Tasks of the SRB
- 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 (NRAs); and
- The SRB is in charge of the Single Resolution Fund (SRF). The SRF is financed by the banking sector. It has been set up to ensure that financial support is available as a last resort, after private solutions have been ruled out and after the owners and creditors have borne losses.