EC signed a memorandum of understanding (MoU) with SRB on the modalities for their cooperation and information exchange on bank resolution. The MoU is intended to codify best practices and ensure that effective working arrangements are in place between EC and SRB. The two authorities share the objectives of ensuring the orderly resolution of failing banks while protecting financial stability and ensuring that taxpayers are not first in line to bear costs.
The MoU spells out the working methods between SRB and EC, in line with the Single Resolution Mechanism (SRM) legal framework. This includes cooperation on resolution, regulatory, and communication matters. The MoU does not extend to cooperation on EC decisions related to State aid in resolution, as provided for in Article 19 of the SRM. SRB must inform EC about any action it takes to prepare for resolution. In the exercise of their respective responsibilities, SRB and EC must cooperate closely, in particular in the resolution planning, early intervention, and resolution phases pursuant to Articles 8 to 29 of the SRM Regulation and they must provide each other with all information necessary for the performance of their tasks.
Keywords: Europe, EU, Banking, Bank Resolution, MoU, Resolution planning, SRM Regulation, SRB, EC
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