The single
resolution
mechanism
resolution
mechanism
Ten years of
safeguarding financial
stability in the EU
safeguarding financial
stability in the EU
Since 2015, the Single Resolution Mechanism (SRM) has been a cornerstone of
the Banking Union.
Its mission: to manage failing banks effectively, maintain financial stability, and protect taxpayers.
Its mission: to manage failing banks effectively, maintain financial stability, and protect taxpayers.
The global financial crisis showed how fragile the banking system was.
When banks failed, taxpayers had to bail them out pushing up national debt, limiting future public spending, and putting entire economies at risk.
When banks failed, taxpayers had to bail them out pushing up national debt, limiting future public spending, and putting entire economies at risk.
This created a dangerous doom loop, where weak banks and weak public
finances dragged each other down, fuelling even more instability.
European leaders launch the Banking Union to break the link between
banks and national finances.
It lays the groundwork for a unified resolution system.
It lays the groundwork for a unified resolution system.
The EU formally adopts the SRM Regulation, creating the Single Resolution
Mechanism.
The SRB begins operations, working closely with National Resolution Authorities.
The SRB begins operations, working closely with National Resolution Authorities.
10 July 2013
The European Commission adopts the SRM proposal
15 april 2014
The Council formally adopts the SRM Regulation.
21 may 2014
Intergovernmental Agreement (IGA)
1 January 2015
The Single Resolution Board (SRB) preparatory phase begins.
2016
SRM fully operational. The Single Resolution Fund (SRF) becomes active.
The SRB takes on full responsibilities, drafting resolution plans for
major banks and setting Minimum Requirements for Own Funds and Eligible
Liabilities (MREL) to ensure banks can absorb losses and recapitalise in
crisis situations.
National authorities do the same for smaller banks under SRB guidance.
The SRB starts collecting bank contributions to build the Single
Resolution Fund (SRF), a financial safety net funded by the industry, not
taxpayers.
The goal: to reach at least 1% of covered deposits in the Banking Union by 2024, supporting the orderly resolution of failing banks as part of the SRM’s crisis management toolkit.
The goal: to reach at least 1% of covered deposits in the Banking Union by 2024, supporting the orderly resolution of failing banks as part of the SRM’s crisis management toolkit.
Goal:
1% of covered
deposits.
1% of covered
deposits.
Resolution planning and MREL implementation mature over time, backed by
resolvability assessments and progress monitoring tools.
These efforts are part of a broader, internationally coordinated response to the financial crisis, ensuring Europe’s banking framework meets global standards for crisis readiness.
These efforts are part of a broader, internationally coordinated response to the financial crisis, ensuring Europe’s banking framework meets global standards for crisis readiness.
Progress monitoring tools
International coordination
Global standards for crisis readiness
The SRM faces its first big test: resolving Banco Popular in Spain.
The resolution protects depositors, avoids taxpayer costs, and ensures continuity.
The resolution protects depositors, avoids taxpayer costs, and ensures continuity.
The SRM resolves Sberbank Europe, active in several countries.
Resolution tools are applied in Slovenia and Croatia, while Sberbank Austria
enters liquidation without using taxpayers’ money.
This cross-border case shows the SRM’s ability to act quickly and effectively, working closely with the European Central Bank, the European Commission, and other stakeholders.
This cross-border case shows the SRM’s ability to act quickly and effectively, working closely with the European Central Bank, the European Commission, and other stakeholders.
Slovenia
Croatia
Austria
SRM Vision 2028 is the steering guide for the SRM’s work in the coming years to tackle:
Geopolitical risks
Cyber threats Climate-related risks Increasing interconnectedness Market volatility Technological shifts Liquidity pressures
Today, the SRF has reached €80 billion, fully funded by banks. MREL targets
are met.
The SRM is ensuring it is ready for any crisis, focusing on robust resolvability assessment, testing and fully operational tools, as well as working closely with European and global institutions.
The SRM is ensuring it is ready for any crisis, focusing on robust resolvability assessment, testing and fully operational tools, as well as working closely with European and global institutions.
€80 billion
MREL targets are met
resolution plans
The SRM has delivered:
stronger banking resilience, protection for public funds, and a proven crisis management system.
Looking ahead, completing the Banking Union remains a priority to ensure equal confidence across the EU.
stronger banking resilience, protection for public funds, and a proven crisis management system.
Looking ahead, completing the Banking Union remains a priority to ensure equal confidence across the EU.
At a glance:
10 years of results.
making europe’s banks
safer and stronger