Press Release - Banking Union - Single Resolution Board publishes its first Annual Report
Brussels – 13 July 2016
In accordance with the Single Resolution Mechanism Regulation (SRMR), the Single Resolution Board (SRB) is pleased to announce the publication of its first Annual Report. The SRB started in January 2015 with a clear focus on resolution planning; since January 2016 the SRB has been fully responsible for bank resolution.
The SRB is the resolution authority within the Banking Union. Together with the National Resolution Authorities (NRAs) it forms the Single Resolution Mechanism (SRM). The SRB works closely with, in particular, the NRAs of participating Member States, the European Commission (EC), the European Central Bank (ECB), the European Parliament (EP) and National Competent Authorities (NCAs). The NRAs play a key role within the Banking Union. The mission of the SRB is to ensure an orderly resolution of failing banks with minimum impact on the real economy and the public finances of the participating Member States of the Banking Union.
This first SRB Annual Report covers the period from 1 January 2015 to 31 December 2015. The priorities for the SRB in 2015 included capacity-building, setting up its governance structure, shaping its resolution function and competence, as well as formalising agreements and memoranda of understanding with key European bodies.
"The Board Members and the SRB staff are committed to our mission. The SRB is the second pillar of the Banking Union. Together with the National Resolution Authorities of the participating Member States we focus on resolution planning to ensure that – if need be - banks can be resolved without recourse to public funds.” - Elke König, Chair of the Single Resolution Board.
The SRB will exercise its power in an appropriate and proportionate manner (including setting Minimum Requirement for own funds and Eligible Liabilities, MREL) in order to ensure banks are resolvable. Well established resolution planning, adequate MREL and focus on removing obstacles to resolution will further enhance the stability of the banking sector and hopefully avoid future resolution cases by allowing earlier – private – intervention.
The SRB, in collaboration with the NRAs of participating Member States, accomplished its 2015 objectives under a new framework, the Bank Recovery and Resolution Directive (BRRD) which was published in the Official Journal on 12 June 2014, and came into force on 1 January 2015 (with a one year transitional period for the bail-in tool).
The SRB is also responsible for the Single Resolution Fund (SRF) and it set up the relevant procedures to manage the SRF in 2015. In 2015, the SRB finalised the contribution collection mechanism while supporting the negotiations of a bridge financing solution and developing an interim investment strategy. Currently, the SRB has collected over EUR 10 billion from 2015 and 2016 contributions to the SRF.
SRB Annual report 2015:
About the SRB
The SRB is the resolution authority for the significant and cross border banking groups established within participating Member States. In the context of the Single Resolution Mechanism it works in close cooperation with the National Resolution Authorities. Within the Banking Union the SRB cooperates with the European Parliament, the European Central Bank, the European Commission, as well as other European and international institutions. Its mission is to ensure an orderly resolution of failing banks with minimum impact on the real economy and on public finances of the participating Member States and beyond.
Camille De Rede – Communication Officer