SRB announced that the Single Resolution Fund (SRF or the Fund) received a cash injection of EUR 7.8 billion from 3,186 institutions in 2019, bringing the total amount in the Fund to about EUR 33 billion. The Fund is designed to reduce costs for taxpayers when banks fail, by having a pot of money available. The target size of the Single Resolution Fund is intended to be at least 1% of covered deposits, or about EUR 60 billion (as expected), by the end of 2023.
The Single Resolution Fund pools contributions raised on an annual basis at the 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 Regulation (EU) 2015/81 and are collected via the national resolution authorities. The Single Resolution Fund is being built-up over a period of eight years (2016-2023). The Fund was established by Regulation (EU) No 806/2014 (Single Resolution Mechanism, or SRM, Regulation). Where necessary, the Single Resolution Fund may be used to ensure the efficient application of resolution tools and the exercise of the resolution powers conferred to SRB by the SRM Regulation. The Single Resolution Fund ensures that the financial industry, as a whole, finances the stabilization of the financial system.
Keywords: Europe, EU, Banking, Single Resolution Fund, Regulation 2015/81, Regulation 806/2014, SRM Regulation, Banking Union, SRB
Previous ArticlePRA Consults on the Insurance XBRL Taxonomy Version 1.1.0
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.