The Single Resolution Board (SRB) published a blog post by Board Member Karen Braun-Munzinger outlining how the Single Resolution Mechanism is simplifying its work to make banks resolvable while seeking to avoid undue industry burden. The post frames the agenda against the cost of the global financial crisis, citing more than EUR 1.4 trillion in EU public capital support and EUR 3.6 trillion in liquidity aid to financial firms between 2008 and 2017. Resolution planning has been streamlined and made more targeted, with some mature deliverables such as playbooks, communication plans and other reports no longer needing annual updates. The SRB is coordinating with other authorities including the European Central Bank and the European Banking Authority to reduce duplicated requests and further harmonise reporting standards, and it points to enhanced stakeholder engagement through public consultations and industry hearings. It also highlights an intention to maintain policy stability, including for the minimum requirement for own funds and eligible liabilities (MREL), while rejecting deregulation that would undermine the resolution framework. The blog identifies areas for legislators and regulators to explore, including moving to a two- or three-year cycle for reviewing and updating resolution plans, reviewing the prior permission regime for early redemptions of MREL instruments, making requirements for smaller banks and banks’ MREL disclosures more proportionate, and enabling waivers for some Single Resolution Fund (SRF) data collection and certain reports such as those on financial market infrastructures. It notes that the impracticability framework in BRRD Article 55 is being reviewed as part of CMDI and is expected to replace contract-by-contract notifications with a warning system, and signals SRB readiness to contribute to broader work on simplifying the regulatory capital stack.
Single Resolution Board 2025-10-09
Single Resolution Board streamlines resolution planning and flags areas for legislative simplification
The Single Resolution Board (SRB) is streamlining the Single Resolution Mechanism to enhance bank resolvability and minimize industry burden, as detailed by Board Member Karen Braun-Munzinger. The SRB is coordinating with the European Central Bank and the European Banking Authority to harmonize reporting standards and maintain policy stability, particularly regarding the minimum requirement for own funds and eligible liabilities (MREL). The blog suggests exploring longer cycles for resolution plan updates, reviewing MREL redemption permissions, and making requirements for smaller banks more proportionate.