The Single Resolution Board (SRB) is the new European Banking Union's resolution authority. It is a key element of the Banking Union and its Single Resolution Mechanism. Its mission is to ensure the orderly resolution of failing banks, with as little impact as possible on the real economy and public finances of the participating EU countries and others.
Its main tasks are to:
In 2 sessions - executive and plenary. Voting rules at each session strike a balance between the need to take all countries' interests into account and the need to make sure effective decisions are taken at EU level.
Executive session – to take the key preparatory and operational decisions on resolving individual banks, including use of the Fund, and the decisions addressed to national authorities to implement the measures. Such sessions involve:
Individual resolution decisions involving the use of the Fund below a €5bn threshold are adopted.
Plenary session - competent to decide in individual resolution cases whether the support of the Fund is required above the €5bn threshold.
The Single Resolution Board works in close collaboration with the European Banking Authority, whose main task is to help establish a Single European Rulebook on banking setting out standard prudential rules for financial institutions in the EU. The Authority also promotes convergence of supervisory practices and assesses risks and vulnerabilities in the EU banking sector.
The Single Resolution Board will be able to act swiftly, appropriately and proportionately to establish recovery and resolution arrangements for Eurozone banks. The aim is to avoid future bail-outs and place the burden of resolution on the banks, with minimum costs to taxpayers and the real economy.