Single Resolution Mechanism

This article needs to be updated. Please help update this article to reflect recent events or newly available information. (January 2023)

Regulation 806/2014

European Union regulation
Title	Establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund
Applicability	All EU members. SRM provisions however only apply to Member States participating in the SSM.
Made by	European Parliament and Council
Made under	Article 114 of the TFEU.
Journal reference	L225, 30.07.2014, p.1
History
Date made	15 July 2014
Entry into force	19 August 2014
Applies from	Applies in its entirety from 1 January 2016, conditional a prior transfer of contributions to the Single Resolution Fund has been met. Otherwise, it will apply in its entirety from the first day of the month following the day where the payment requirement has been met. Articles 1-4, 6, 30, 42-48, 49, 50(1)(a)+(b)+ (g) to (p), 50(3), 51, 52(1)+(4), 53(1)+(2), 56-59, 61-66, 80-84, 87-95 and 97-98, apply from 19 August 2014 (2014-08-19). Articles 69(5), 70(6)+(7), and 71(3), which empower the Council to adopt implementing acts and the Commission to adopt delegated acts, apply from 1 November 2014 (2014-11-01). Article 8+9 and all related provisions elsewhere in the regulation, which empowers the Board to collect information and cooperate with the national resolution authorities for the elaboration of resolution planning, apply from 1 January 2015 (2015-01-01).
Other legislation
Amends	Regulation (EU) No 1093/2010
Current legislation

Agreement on the transfer and mutualisation of contributions to the Single Resolution Fund
Parties to the Single Resolution Fund   Within the eurozone   Outside the eurozone (applying the treaty)   Outside the eurozone (not applying the treaty)   Signatories that have not ratified   EU members which may accede to the treaty
Type	Intergovernmental agreement
Signed	21 May 2014 (2014-05-21)[1]
Location	Brussels, Belgium
Effective	1 January 2016
Condition	Entry into force on the first day of the second month following the ratification by states representing 90% of the weighted vote of SSM and SRM participating states; but not before 1 January 2016[2]
Signatories	26 EU member states (all except Sweden) including all 20 eurozone states[1]
Ratifiers	24 / 26 [3]
Depositary	General Secretariat of the Council

The Single Resolution Mechanism (SRM) is one of the pillars of the European Union's banking union. The Single Resolution Mechanism entered into force on 19 August 2014 and is directly responsible for the resolution of the entities and groups directly supervised by the European Central Bank as well as other cross-border groups. The centralised decision making is built around the Single Resolution Board (SRB) consisting of a chair, a Vice Chair, four permanent members, and the relevant national resolution authorities (those where the bank has its headquarters as well as branches and/or subsidiaries).

Upon notification from the ECB that a bank is failing or likely to fail, the Board will adopt a resolution scheme including relevant resolution tools and any use of the Single Resolution Fund, established by the SRM Regulation (EU) No 806/2014. The Single Resolution Fund helps to ensure a uniform administrative practice in the financing of resolution within the SRM.

A Single Resolution Fund (SRF) to finance the restructuring of failing credit institutions was established as an essential part of the SRM by a complementary intergovernmental agreement, after its ratification.^[4] If it is decided to resolve a bank facing serious difficulties, its resolution will be managed efficiently, at minimum costs to taxpayers and the real economy. In extraordinary circumstances, the Single Resolution Fund (SRF), financed by the banking sector itself, can be accessed. The SRF is established under the control of the SRB.

The available financial means of the Fund aims to equal at least 1% of the amount of the covered deposits of all credit institutions authorised in all of the Member States participating in the Banking Union. The SRF was built up over eight years, from 2016 until 2023, when it reached the target level of at least 1% of the amount of covered deposits of all the banks operating in the Banking Union. As of 31 December 2024, the SRF amounts to €80 billion, which is above the 1% of covered deposits.^[5]