December 14, 2018

SRB published a report on its annual conference, which was held in Brussels on October 15, 2018. This event provided panelists and speakers with the opportunity to reflect on the changes made in the decade since the global financial crisis. 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 during the conference related to what is required to reach the finish line of resolvability. The need for a harmonized European Deposit Insurance Scheme as well as a backstop to the Single Resolution Fund was emphasized, alongside the necessity of overcoming inconsistencies in national insolvency proceedings and of addressing transparency. Additionally, more technical questions were raised this year as resolution planning by SRB continued:

  • Are Management Information Systems organized and accessible enough to allow for efficient resolution?
  • Can backstop funds be accessed quickly enough? and What about cyber-security risks?

The progress made in resolution thus far encouraged the consideration of such novel topics—considering that the quest for resolvability is always changing and that the concept of resolvability is evolving. Across all the topics discussed, there was certain consensus on one issue: the need to fight against complacency. 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.”

 

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Keywords: Europe, EU, Banking, Resolvability, Bank Resolution, Single Resolution Fund, EDIS, Annual Conference, SRB