Today, the SRB publishes new guidance on liquidity and funding in resolution . Banks are likely to face liquidity stress in resolution because of the reluctance of market participants to roll-over or provide funding to a bank in crisis. Even after a successful resolution, liquidity stress may...
Resolution planning has come a long way since the financial crisis 2007/08 and is now firmly rooted in the Banking Union’s regulatory framework. Preserving financial stability in all 21 Banking Union Member States and beyond is key [1] , and this guides the SRB’s approach to resolution planning and...
Resolution planning is about being prepared to deal with failing banks in a controlled way, in order to protect taxpayers and keep providing critical functions to the economy while preserving financial stability. To safeguard the resolution objectives, the resolution plans are updated on an annual...
The Single Resolution Board responded to the European Commission targeted consultation on the review of the bank crisis management and deposit insurance (CMDI) framework. About the consultation In the aftermath of the global financial crisis, the EU laid down the rules for handling bank failures...
In Europe, we have built our resolution framework from scratch in just a few short years. This required prioritising tasks in the initial phases. Up to now, we have mainly focused on the operationalisation of the bail-in tool, as it is the preferred resolution strategy for most of the banks under...
