The international banking resolution framework
The international European banking resolution
Banking crises resolution measures and deposit protection
The deposit guarantee scheme's own resources (i.e. excluding the resolution fund) may be used at the time of the resolution of an institution to compensate for the lack of a bail-in on the guaranteed deposits, as well as to finance other resolution measures (bridge bank, non-performing asset management tools, asset separation tools) in an amount equal to the cost saved by the deposit guarantee scheme for a liquidation and, therefore, depositor compensation.
SRM regulation: Single Resolution Board (SRB) and Single Resolution Fund (SRF)
The Single Resolution Mechanism (SRM) regulation, proposed on 20 July 2013 by the European Commission and adopted by Parliament on 15 April 2014, together with the related intergovernmental treaty of 21 May 2014 create at the euro zone level:
- a Single Resolution Board (SRB), responsible for resolution decisions, and
- a Single Resolution Fund (SRF), whose role is to contribute to their funding. It concerns European systemic institutions and institutions whose failure would impact several countries in the zone.
The SRF will be funded by specific contributions from the relevant institutions, which are expected to total approximately €55 billion by 2024. The national authorities remain responsible for implementing resolution decisions.
The national resolution authorities remain responsible for implementing the resolution decisions. In France, it is the "Résolution College" set up whitin the ACPR and in which the FGDR participates.
Moreover, since the scopes of the BRRD and the SRM differ somewhat, a French resolution fund, managed by the FGDR under the direction of the resolution college, remains in place. And the FGDR is responsible for collecting the French banks' contributions to the single resolution fund (SRF), on its behalf.