SRB Statement on Court Judgments on SRF Contributions of Three Banks
SRB published a statement on judgments of the General Court of EU, annulling the decisions of SRB on the 2016 ex-ante contributions of Banco Cooperativo Español, Portigon, and Hypo Vorarlberg Bank to the Single Resolution Fund or SRF. In the judgments, the Court identified certain flaws related to procedural elements of the decision-making process in 2016, when SRB was in its start-up phase. It made no comment on the calculation methodology, nor on the validity of the legal framework for calculating the ex-ante contributions. SRB will carefully assess the content of the judgments to determine the next steps, which will be taken in cooperation with the relevant national resolution authorities. The banks remain under the obligation to pay ex-ante contributions for 2016.
The judgments only relate to the ex-ante contributions of the three institutions for 2016. The contributions of these entities represent a very small percentage of the overall ex-ante contributions collected from more than 3,700 institutions in 2016. There will be no impact on the build-up of the Single Resolution Fund. Contributions to the Single Resolution Fund are raised annually from institutions in scope in each of the 19 Banking Union member states. SRB cooperates with national resolution authorities to ensure the raising of all the contributions due by the institutions under its remit. SRB is responsible for the calculation of ex-ante contributions while the national resolution authorities are responsible for the collection of contributions and the transfer to the Single Resolution Fund.
Related Link: Press Release
Keywords: Europe, EU, Banking, Single Resolution Fund, Ex-Ante Contributions, Banco Cooperativo Espanol, Portigon, Hypo Voralberg Bank, National Resolution Authorities, SRB
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