The European Single Resolution Mechanism (SRM) will become fully operational on 1 January 2016. The aim of the institution is to ensure orderly resolution of distressed banks within the European Monetary Union. In its role as Austria’s national resolution authority, the FMA is part of the SRM. Meanwhile, the FMA already became fully operational in this area as of 1 January 2015. The centralised European resolution authority is the Single Resolution Board (SRB) with headquarters in Brussels. While this authority was also formally established on 1 January 2015, during the founding year its sole responsibility had been to develop resolution schemes and plans. The FMA is involved as a voting member in decision-making processes at the Board’s executive session and is represented by Executive Director Klaus Kumpfmüller. As of 1 January 2016 the SRM/SRB will also take over responsibility for resolution and restructuring measures conducted among the roughly 150 significant cross-border banks and groups within the participating Member States. All other credit institutions will remain under the full responsibility of the national resolution authorities. When conducting the orderly resolution of distressed banks, the SRM has to ensure that impact on the real economy as well as any public funding is kept to a minimum. Beginning with 2016 the SRB will also take over management of the Single Resolution Fund (SRF), which is to be financed by the banks and is to have a balance of € 50 billion once fully funded. Austrian banks contributed a total of € 198.2 million for 2015.
“The full establishment of the SRM, the Single Resolution Mechanism, is a significant step towards completing the European Banking Union and as such represents a major contribution to reinforcing the stability of Europe’s financial markets,” FMA Executive Directors Helmut Ettl and Klaus Kumpfmüller observed. Following the Single Supervisory Mechanism (SSM), the common European regime for banking supervision under the leadership of the European Central Bank (ECB), the second pillar of the European Banking Union is now fully in place.
About the SRM
The SRM is the institutional framework for the resolution of financially distressed banks in participating Member States. The Single Resolution Board, headed by Elke König as Chair, manages and coordinates the resolution of credit institutions which either are under supervision by the European Central Bank (ECB), carry out cross-border activities or have requested funding from the Single Resolution Fund (SRF). The SRB cooperates with the European Commission, the ECB as well as the national resolution and supervisory authorities, within the framework of the European Banking Union. The matters falling within the scope of the SRB’s responsibilities include preparing resolution plans and developing a resolution scheme for each of the nearly 150 significant banks currently based in the participating Member States. The SRB is also responsible for management of the SRF as well as for monitoring the national resolution authorities to ensure uniform application of Europe’s legal framework for bank resolution.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006
+43/(0)676/882 49 516