In remarks to the European Parliament committee, the Single Resolution Board gave an update on its recent work and set out its position on simplification, competitiveness and the international dimension of bank resolution. The Board highlighted the publication of its 2025 Annual Report, ongoing work to implement the Crisis Management and Deposit Insurance review, and further efforts to strengthen banks' resolvability through testing, crisis exercises, on-site inspections and closer cooperation within the Banking Union. It also pointed to a streamlined procedure for approving early redemptions of minimum requirement for own funds and eligible liabilities, or MREL, instruments and shorter resolution plans as examples of reducing burden on banks and freeing up resources for higher-priority work. On competitiveness, the Board argued that simplification should be approached across the wider prudential and crisis-management framework rather than through isolated changes. It said MREL requirements need to be considered together with capital requirements, supervisory expectations and resolution financing, and that easing subsidiary-level liquidity constraints would require broader structural changes, including a common deposit insurance scheme and an adequate liquidity facility beyond the Single Resolution Fund. The Board also warned against adding complexity to crisis decision-making, said the independence of the Single Resolution Mechanism should be preserved, and stressed that resolution authorities need flexibility in using their tools. In the international context, it said maintaining an effective resolution framework is important for both European financial stability and credibility with foreign authorities, citing ongoing Financial Stability Board work on the effective application of cross-border bail-in. Looking ahead, the Board said it expects to work with the European Commission and co-legislators in the coming months and to contribute to upcoming legislative files affecting the Banking Union framework.
Single Resolution Board2026-07-15
Single Resolution Board outlines simplification steps and warns competitiveness reforms must preserve resolution effectiveness
The Single Resolution Board used parliamentary remarks to update on its 2025 work, including implementation of the Crisis Management and Deposit Insurance review and procedural simplification such as faster approval of early MREL redemptions. It said competitiveness reforms should not weaken resilience, SRM independence or resolution flexibility. The Board also stressed the need to preserve the international credibility of the EU resolution framework, including in cross-border bail-in.