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
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.