The Single Resolution Board (SRB) published a blog post explaining how it manages and invests the Single Resolution Fund (SRF) when it is not needed for resolution, focusing on the practical trade-off between safeguarding the fund’s value and keeping assets highly liquid for rapid deployment. The SRB notes that the SRF has never been used since 2016, but must remain accessible at short notice if a resolution is decided. The post describes an investment approach governed by EU rules that embed security and liquidity as the core principles, with return maximisation treated as a secondary objective. With assets of around €80 billion funded by contributions from over 3,000 banks across the Banking Union, the SRF is diversified primarily across cash deposits (typically with central banks or other secure institutions), highly rated sovereign bonds issued by EU Member States, and other liquid assets meeting the SRB’s criteria. The SRB also highlights the need to monitor macroeconomic and market conditions, passively manage the portfolio while adjusting composition when needed, and execute withdrawals and other actions discreetly to avoid unintended market signals.
Single Resolution Board 2025-09-02
Single Resolution Board explains how it invests the €80 billion Single Resolution Fund to preserve value and maintain rapid liquidity
The Single Resolution Board (SRB) detailed its management of the Single Resolution Fund (SRF), emphasizing asset security and liquidity for rapid deployment. The SRF, with about €80 billion from over 3,000 banks, is invested in cash deposits, highly rated EU sovereign bonds, and other liquid assets. The SRB adheres to EU rules prioritizing security and liquidity, while monitoring market conditions and managing the portfolio discreetly.