Resolution funds

Resolution funds form an important component of a credible resolution framework. They ensure that there is adequate funding for resolution if other resolution measures are not sufficient enough. 

The underlying basic principle for the funds, set by the banking union, is that the costs incurred from failing banks should not be borne by taxpayers. The fund is financed by contributions collected from banks and investment firms. 

The banking union has a supranational Single Resolution Fund that is administered by the Single Resolution Board (SRB). In addition to the Single Resolution Fund, Finland also has a national Resolution Fund maintained by the Financial Stability Authority. The Fund’s assets can be used as part of the resolution of certain Finnish investment firms, as well as some foreign credit institutions and investments firms with subsidiaries in Finland.

Read more about the Single Resolution Fund.

Read more about the National Resolution Fund.