Regulation (EU ) No 806/2014 (the SRM Regulation) established a Single Resolution Mechanism (SRM ) in all Member States in the euro area. A central component of the resolution mechanism is the establishing of a Single Resolution Fund (SRF ) to support the financing of resolution actions, and thereby contributes towards the stabilisation of the financial system.
As a result of the establishment of the SRF , the financial industry was obliged to make a certain amount of funds available that can be used for financing of resolution actions. Through the SRF , the financial industry itself contributes towards the stabilisation of the financial system, and governments and taxpayers are no longer first in line, where such financing is required for resolution.
The SRF is owned and managed by the Single Resolution Board (SRB ). Institutions that are obliged to make contributions have been required to make financial contributions to the SRF since 1 January 2016. The individual amount to be contributed is based on the size and risk profile of the respective institution, which is calculated by the SRB on an annual basis, and set by the FMA . The FMA sends out notices and collects the contributions from the institutions and then transfers the collected amounts to the SRF .
The SRF ’s target level of 1 % of covered deposits of all the authorised institutions in the participating Member States is intended to be achieved by 2024.