Single Resolution Board holds its second conference in Brussels "Building resolvability together"
Brussels – 29 September 2017
Today, the Single Resolution Board (SRB) is holding its second conference in Brussels under the theme "Building resolvability together”. The SRB’s focus is on making banks easier to resolve, counting on and fostering a strong cooperation with all its stakeholders. Since the financial crisis much has happened: banks are stronger, safer and less leveraged today. But more progress still remains to be made by banks, enhancing their preparedness for resolution, and by the authorities developing and enhancing Resolution Plans, setting minimum requirement for own funds and eligible liabilities (MREL) and more generally addressing barriers to resolution. This work will require seamless cooperation across all stakeholders.
“The Single Resolution Board, together with the National Resolution Authorities of the Banking Union, 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. 2017 has seen the first experience with the resolution framework. It clearly proved its functioning, but work on resolvability is a multi-year project for all and the lessons-learned will feed into future work.” - Elke König, Chair of the Single Resolution Board
The conference features opening addresses and keynotes from:
Valdis Dombrovskis, Vice-President of the European Commission responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and the Capital Markets Union, speaking on the future of resolution and the Banking Union : "We created the Single Resolution Mechanism as the second pillar of the Banking Union in the midst of crisis with ambitious aims: reducing the bank-sovereign feedback loop, protecting financial stability, and making sure that taxpayers are not first in line to foot the bill for the banking sector's mistakes. This year - as it was put to the test – we saw that the SRM is working. But work still remains before we have fully achieved its objectives. We need to implement what we have agreed, further reduce risks in the banking system, and complete the Banking Union. This is one of the most important short-term actions if we want to move on with the deepening of Europe's Economic and Monetary Union."
Klaas Knot, President of De Nederlandsche Bank, speaking on the need for a safety net: “We need to tackle the issue of funding in resolution. New instruments may be needed”.
Sir Jon Cunliffe, Deputy Governor for Financial Stability, Bank of England, speaking on resolution feasibility: “There are in place now credible options, other than insolvency or bailout, that ensure that bank shareholders and creditors will bear losses if a bank fails”.
Martin J. Gruenberg, Chairman, U.S. Federal Deposit Insurance Corporation, speaking on building resolvability for globally systemic important banks: “Tackling the issue of resolving a systemically important financial institution requires the commitment of all of the groups represented here today on a global scale. Together, we are building a solid foundation to address this critically important issue. More work remains to be done, but we shouldn’t lose sight of how far we have come.”
The Conference also features panel discussions with the industry, regulators and supervisors focused on the promises of the Banking Union, the future of resolution and international challenges to overcome.
The conclusions of the Single Resolution Board's second conference will be available as a report to be published in the course of next month.
To follow the event through web-stream, download the agenda, or learn more, go to the conference homepage. You can also follow the online conversation on Twitter through #SRB2017.
- BANK RECOVERY AND RESOLUTION DIRECTIVE (BRRD) 2014/59/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms
- SINGLE RESOLUTION MECHANISM REGULATION (SRMR) (EU) No 806/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund
About the Single Resolution Board
The Single Resolution Board (SRB) is the central resolution authority within the Banking Union (BU). Together with the national resolution authorities of participating Member States it forms the Single Resolution Mechanism (SRM). The SRB works closely with 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 and public finances of the participating Member States and beyond.
Camille De Rede – Communication Officer
Phone number: +32 2 490 3530
Switchboard: +32 2 490 3000
Mobile phone: +32 477 028 530
Maria Hormaeche Lazcano - Seconded National Expert
Phone number: +32 2 490 3702
Switchboard: +32 2 490 3000
Mobile phone: +32 477 028 702