Single Resolution Board - New Strategic Phase in 2024

Single Resolution Board: Embarking on a New Strategic Phase in 2024
The year 2024 is set to be a transformative one for the Single Resolution Board (SRB), marking the commencement of a new strategic phase built upon the foundation of diligent work and effective collaboration with National Resolution Authorities (NRAs) within the Single Resolution Mechanism (SRM) framework and the banking industry. This new phase is shaped by the SRM strategy, which is expected to be adopted in early 2024.

Central to the SRB’s mandate is the preparedness for crises and enhancing the resolvability of banks in the Banking Union. This mission is crucial for orderly resolutions of failing banks. From 2024 onwards, there will be an increased focus on crisis management and readiness. This includes the operationalization of all resolution tools and comprehensive testing to confirm banks' effective resolvability. Strengthening these capabilities will enable efficient crisis management and the development of a flexible, innovative crisis management framework.

The SRB's agenda will continue to include managing the Single Resolution Fund and overseeing Less Significant Institutions (LSIs). The SRB will maintain its annual 12-month Resolution Planning Cycle (RPC) and conduct resolvability assessments of banks under its purview. The Single Resolution Fund (SRF), having been progressively built up until the end of 2023, will undergo further operational testing in 2024.

Building on past achievements, 2024 will see the SRB implementing additional measures to ensure bank resolvability and developing a comprehensive plan for resolvability testing. This follows the conclusion of the transitional period for implementing the Banking Package and the Expectations for Banks (EfB). The policy work for 2024 will leverage lessons learned from existing policies and potential changes arising from strategic reviews and the Crisis Management and Deposit Insurance (CMDI) package.

Learn more about SRB activities in article: SRB Publishes 2022 Resolvability Assessment of Banking Union Banks

In line with its digital transformation agenda, the SRB will intensify the use of best-practice technologies in its core processes and tools from 2024 onwards. To achieve this, the SRB will work in collaboration with the Single Supervisory Mechanism (SSM) and other relevant bodies and the industry to meet the challenges and seize the opportunities presented by digitalization.

Furthermore, the SRB plans to maintain close engagement with key European entities such as the European Commission, the European Parliament, the Council of the European Union, the European Central Bank, and the European Banking Authority on relevant regulatory and policy issues. The SRB, together with NRAs, will also work towards developing common stances to support legislative processes, drawing on past successful collaborations.

Given the changes introduced by the new SRM strategy, the SRB will explore opportunities to revise its governance structures and mechanisms and the structure of the SRB itself, while adhering to the legal framework. This revision aims to align the internal workings of the SRM with its new vision and dynamic context, enhancing efficiency, transparency, and collaboration within the SRM and with external stakeholders.

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