SRF grows to €33 billion after latest round of transfers
The Single Resolution Board (SRB) today announced that the Single Resolution Fund (SRF) received a cash injection of €7.8 billion from 3,186 institutions for the year 2019. This brings the total amount in the SRF to just under €33 billion. The target size of the SRF is intended to be at least 1% of covered deposits by end 2023, which is expected to be about €60 billion.
Financed by banks and credit institutions, the Fund is designed to reduce costs for taxpayers when banks fail by having a pot of money available.
The SRF pools contributions raised on an annual basis at national level from credit institutions and certain investment firms within the 19 participating Member States that make up the Banking Union. These contributions are calculated according to EU laws and are collected via the National Resolution Authorities. The SRF is being built-up over a period of eight years (2016-2023).
“The Fund is steadily being built-up and we are about half way there. The SRF is a significant part of the SRB’s toolbox as it ensures that the SRB will be able to implement a resolution decision without recourse to the taxpayer” - Elke König, Chair of the Single Resolution Board.
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.
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