Featured Product

    SRB Announces Single Resolution Fund on Way to Reach Target

    July 14, 2020

    SRB announced that the Single Resolution Fund received an increase of EUR 9 billion from 3,066 institutions for 2020, bringing the total amount in the Fund to approximately EUR 42 billion. The target size of the Single Resolution Fund has been set at 1% of covered deposits by the end of 2023. The Fund will end up at close to EUR 70 billion, taking into account the current annual growth in covered deposits. According to the SRB Chair Elke König, the Fund is being "steadily built up" and is on its way to reach the target.

    The Single Resolution Fund was established by the Single Resolution Mechanism Regulation (Regulation 806/2014 or SRM Regulation). Where necessary, the Fund may be used to ensure the efficient application of resolution tools and the exercise of the resolution powers conferred to the SRB by the SRM Regulation. The Single Resolution Fund has grown to EUR 42 billion after the latest round of transfers and can be used to support the effective resolution of a failing bank, if needed. However, the Fund shall not be used to absorb the losses of an institution or to recapitalize an institution. The Fund is composed of contributions from credit institutions and certain investment firms in the 19 participating member states within the Banking Union. These contributions are calculated according to EU law and collected via the national resolution authorities. 

    Within the resolution scheme, the Single Resolution Fund may be used only to the extent necessary to ensure the effective application of the resolution tools, as last resort, in particular:

    • To guarantee the assets or the liabilities of the institution under resolution
    • To make loans to or to purchase assets of the institution under resolution
    • To make contributions to a bridge institution and an asset management vehicle
    • To make a contribution to the institution under resolution in lieu of the write-down or conversion of liabilities of certain creditors under specific conditions
    • To pay compensation to shareholders or creditors who incurred greater losses than under normal insolvency proceedings

     

    Related Links

    Keywords: Europe, EU, Banking, Single Resolution Fund, Resolution Framework, SRMR, Banking Union, SRB

    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514