This year marks the 10th anniversary of the establishment of the Single Resolution Mechanism (SRM) of the EU Banking Union and the Finnish Financial Stability Authority (FFSA).
The Single Resolution Board (SRB) and national resolution authorities have earned their place as one of the key actors in the financial market. The resolution framework ensures that banking crises can be resolved without resorting to saving banks with taxpayers’ money.
– The creation of the Single Resolution Mechanism was a bold move by policymakers at the time. The Single Resolution Board was entrusted with highly effective powers and an exceptional degree of independence from Member states’ national authorities. The decision to establish a common resolution fund, financed by banks and amounting to over EUR 80 billion, was also a significant step that sparked considerable debate in Finland, too, says Jaakko Weuro, General Director of the FFSA.
– However, experience has shown that the system is effective and ensures that authorities have the necessary capabilities to act even in situations where the largest banks would face difficulties, Weuro concludes.
Join the online seminar today
To celebrate the anniversary, the Single Resolution Board is arranging a 10-year-anniversary congress in Brussels today, 15 October at 10:30-17:00 (UCT+3). You can follow the event online.
The speeches and panel discussions will delve into, among other things, the current state of the resolution mechanism, its challenges and future prospects – both in the European and global context.
For more information on the event program and the webstream link, click here to the SRB's website.
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Read more: Ten years of banking resolution – Lessons learnt from the financial crises, and are we prepared enough for new threats?
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