The Board shall collect information for the preparation and implementation of resolution plans for banks under its jurisdiction [1]. Working at the Board offers you a unique opportunity to participate in the management of bank resolution and resolution policies in Europe. We are looking for high-calibre candidates who have the highest level of integrity, team spirit and motivation to work for the European project. We employ professionals of all ages, backgrounds and disciplines with expertise not only in bank resolution, but also in human resources, communications, law, ICT and other fields. On 28 November 2017, the Appellate Body of the SRB confirmed that the full disclosure of certain documents related to the Banco Popular resolution would raise financial stability concerns. Taking into account the time elapsed since the resolution action and after careful consideration of potential financial stability concerns, the Board decided, after consulting relevant stakeholders, to disclose additional parts of the resolution decision and parts of the assessment reports and the 2016 resolution plan that are considered non-confidential. In line with this approach, the Board published two additional documents relating to the resolution action, namely the marketing decision and the sales process letter. The role of the Board is proactive: instead of waiting for resolution cases to be resolved, the Board focuses on resolution planning and improving resolvability in order to avoid the potential negative impact of bank failure on the economy and financial stability. The Board is the central resolution authority within the Banking Union.
Together with the national resolution authorities (NRAs) of the participating Member States, it forms the Single Resolution Mechanism (SRM). The Board works closely with NRAs, the European Commission (EC), the European Central Bank (ECB), the European Banking Authority (EBA) and national competent authorities (NCAs). The Board strives to be a trustworthy and respected resolution authority with a strong resolution capacity in the SRM, thus avoiding future bailouts. The board`s objective is to be a centre of excellence for bank resolution. Its three values are (i) excellence in resolution, (ii) integrity and (iii) the spirit of the EU. This international reference document requires member jurisdictions to create a framework for the orderly settlement of large systemically important financial institutions. “Bank expectations” will be introduced gradually. Banks are expected to have strengthened their capacity in all aspects by the end of 2023, unless otherwise indicated. If necessary, the Board and the banks may agree on other dates on a bilateral basis.
Expectations are tailored to each bank and its resolution strategy through its annual work programmes, allowing for flexibility and proportionality. The Single Resolution Board (SRB) today published a “full” non-confidential version of the resolution decision, the assessment reports and the 2016 resolution plan. In order to make as much information as possible available to the public, the Board decided to publish additional resolution documents. The Board`s Disclosure Data Report, Critical Functions Report and Financial Market Infrastructures Report shall include the minimum information required by the European Commission`s Implementing Regulation [2] and other details required for the 2020 Resolution planning cycle (Report on Additional Data on Accountability). The Single Resolution Board (SRB) is the central resolution authority within the Banking Union. Together with the national resolution authorities of the participating Member States, it shall constitute the Single Resolution Mechanism. Established by Regulation (EU) No 806/2014 on the Single Resolution Mechanism (SRM Regulation), the Board has been operating as an independent agency of the EU since January 2015. The Board aims to become a trustworthy and respected resolution authority with a strong resolution capacity and the ability to act quickly and appropriately, consistently and proportionately to establish and enforce an effective resolution system for banks located in the territory of the SRM, thus avoiding future bailouts. The Board shall endeavour to ensure an orderly resolution of bank failures with minimal impact on the real economy, the financial system and the public finances of the participating Member States and beyond.
The Board was established by the 2014 REGULATION on the EU Single Resolution Mechanism and started its work on 1 January 2015, with its resolution power fully taken over on 1 January 2016. [1] The Single Resolution Fund (SRF) was established by the SRM Regulation. Where necessary, it may be used to ensure the effective application of the resolution tools and the exercise of the resolution powers conferred on the Board by the SRM Regulation. The SRF is composed of contributions from credit institutions and certain investment firms from the 19 participating Member States of the Banking Union. It will be progressively established over the period up to and including 2023 and is expected to reach the target level of at least 1 % of the amount of covered deposits of all credit institutions within the Banking Union by 31 December 2023. [2] By July 2021, the SRF had reached a volume of €52 billion. [3] The Single Resolution Board (SRB) is an EU agency established in Brussels in 2015 as part of the broader reform, the Banking Union. It acts as the resolution authority for a subset of banks in the euro area and as the institutional hub of the Single Resolution Mechanism.
Resolution is the restructuring of a bank by a resolution authority using resolution tools to protect public interests, including the continuity of the bank`s critical functions and financial stability, at minimal cost to taxpayers. The following subpages provide details on recent reporting requirements: the SRM provides a robust, centralised and independent decision-making process that ensures that resolution decisions are taken efficiently and quickly in all participating Member States of the Banking Union, avoiding uncoordinated measures, minimising negative impacts on financial stability, limiting the need for public financial support and ensuring a level playing field. The Single Resolution Mechanism shall consist of the Single Resolution Board and the national resolution authorities of the euro area countries, Bulgaria and Croatia. It protects financial stability and the taxpayer by planning and managing bank failures. The SRM is the second pillar of the Banking Union, which enables centralised and independent decision-making in bank resolution and ensures the protection of the public interest and important economic functions. Sebastiano Laviola joined SRB in 2019 and took responsibility for resolution strategy and collaboration. .