Single Resolution Board publishes 2018 Conference Report
On the 15th October 2018, the Single Resolution Board held its annual conference in Brussels. This event - occurring ten years after the financial crash that eventually brought the SRB into existence - gave panellists and speakers the opportunity to reflect on the changes made in the decade since the crash. As such, the title of this year’s event was '10 years after the crisis: are banks now resolvable?' In response, a general agreement emerged: while progress has been made, the journey of resolvability is a marathon, not a sprint - and it’s not over.
Recurring themes that emerged throughout the day related to what is required to reach the finish line of resolvability. The need for a harmonised European Deposit Insurance Scheme, as well as a backstop to the Single Resolution Fund, was emphasised, alongside the necessity of overcoming inconsistencies in national insolvency proceedings and of addressing transparency. Further, more technical questions were raised this year as the SRB’s resolution planning continued; are Management Information Systems (MIS) organised and accessible enough to allow for efficient resolution? Can backstop funds be accessed quickly enough? What about cyber-security risks? The progress made in resolution thus far encouraged the consideration of such novel topics—evidence of the fact that the quest for resolvability is always changing and that the concept of resolvability itself is evolving.
Across all the topics discussed, there was certain consensus on one issue: the need to fight against complacency. Now is not the time to slow down in the race. A further push forward and continued accountability is needed if we want to be able to answer the question “are banks now resolvable?” with a resounding “yes.”