The Single Resolution Mechanism is the EU system for
managing the resolution of failing banks in the euro area,
with the Single Resolution Board (SRB) as central player.
Other key players are the Commission and Council. The SRB
oversees the Single Resolution Fund (SRF), which can be
used in bank resolutions. The ECA has an annual obligation
to report on related contingent liabilities.
So far, the SRF has not been used, but there are a large
number of legal challenges relating to a first resolution and
other decisions as well as ex-ante contributions to the SRF.
For the financial year 2018, the SRB reported contingent
liabilities relating to legal challenges to ex-ante
contributions, but none relating to a resolution decision. We
saw no evidence that would contradict the SRB’s
assessment, but we make two recommendations relating to
the SRB’s reporting of contingent liabilities.
Report on any contingent liabilities arising as a result of the performance by the Single Resolution Board, the Council or the Commission of their tasks under the Regulation for the financial year 2018