Single Resolution Board (SRB) - (Decentralised Agencies)
Description Go to funding source website
Decentralised agencies contribute to the implementation of EU policies. They also support cooperation between the EU and national governments by pooling technical and specialist expertise from both the EU institutions and national authorities. Decentralised agencies are set up for an indefinite period and are located across the EU.
- Role: Ensure the orderly resolution of failing banks, with minimum impact on the real economy and the public finances of the participating EU countries and others
- Chair: Elke König
- Partners: European parliament, European Commission, European Central Bank (ECB), National Resolution Authorities (NRAs), European Banking Authority (EBA)
- Established in: January 2015
- Number of staff: Still in start-up phase (Aim: a maximum of 300 by early 2017)
- Location: Brussels (Belgium)
- Website: Single Resolution Board
The Single Resolution Board (SRB) is the new European Banking Union's resolution authority. It is a key element of the Banking Union and its Single Resolution Mechanism. Its mission is to ensure the orderly resolution of failing banks, with as little impact as possible on the real economy and public finances of the participating EU countries and others.
What it does
Its main tasks are to:
- establish standard rules & procedures for the resolution of entities
- take decisions on resolution within the Banking Union according to a standard process - this helps maintain market confidence
- establish credible & feasible arrangements for resolution
- remove obstacles to resolution, to make the banking system in Europe safer
- minimise resolution costs & avoid destruction of value unless necessary to achieve the resolution objectives
- provide key benefits for taxpayers, banks & deposit-holders
- promote EU-wide financial & economic stability.
How it works
In 2 sessions - executive and plenary. Voting rules at each session strike a balance between the need to take all countries' interests into account and the need to make sure effective decisions are taken at EU level.
Executive session – to take the key preparatory and operational decisions on resolving individual banks, including use of the Fund, and the decisions addressed to national authorities to implement the measures. Such sessions involve:
- the Chair
- the Vice-Chair
- the 4 permanent members
- the authorities of the country where the troubled bank is based.
Individual resolution decisions involving the use of the Fund below a €5bn threshold are adopted.
Plenary session - competent to decide in individual resolution cases whether the support of the Fund is required above the €5bn threshold.
The Single Resolution Board works in close collaboration with the European Banking Authority, whose main task is to help establish a Single European Rulebook on banking setting out standard prudential rules for financial institutions in the EU. The Authority also promotes convergence of supervisory practices and assesses risks and vulnerabilities in the EU banking sector.
The Single Resolution Board will be able to act swiftly, appropriately and proportionately to establish recovery and resolution arrangements for Eurozone banks. The aim is to avoid future bail-outs and place the burden of resolution on the banks, with minimum costs to taxpayers and the real economy.