The European Court of Auditors (ECA) will publish a special report “Single Resolution Board: Work on a challenging Banking Union task started, but still a long way to go” on Tuesday 19 December 2017 at 11h30 in 23 EU languages.
ABOUT THE AUDIT
This audit report examines the set-up and readiness of the Single Resolution Board (SRB) to carry out bank resolutions effectively. The auditors checked over 50 complete resolution plans which the SRB had prepared for banks up to the end of January 2017, and surveyed 20 national resolution authorities.
They are expected to make a number of recommendations relating to the rules and guidance for resolution plans, as well as for their preparation, and address issues of staffing and the SRB’s legislative framework.
ABOUT THE TOPIC
Resolution is the restructuring of a failing bank in order to safeguard financial stability and public interests, with minimal costs to taxpayers. Established in the wake of the 2008 financial crisis, the SRB is a key element of the European Banking Union. Its mission is to resolve failing banks with as little impact as possible on the financial stability and real economy of euro area Member States and others.
The SRB, with the assistance of national resolution authorities, is responsible for contingency planning for the resolution of all significant banks and less significant cross-border banks in the euro area. There are about 140 banks under its remit, representing over 80 % of total banking assets in the euro area.
The ECA’s special reports set out the results of its audits of EU policies and programmes or management topics related to specific budgetary areas. The ECA selects and designs these audit tasks to be of maximum impact by considering the risks to performance or compliance, the level of income or spending involved, forthcoming developments and political and public interest.