The Single Resolution Mechanism is the EU system for managing the resolution of failing banks in participating Member States, with the Single Resolution Board (SRB) as central player. Other key players are the Commission, the Council and National Resolution Authorities. The SRB oversees the Single Resolution Fund (SRF), which can be used in bank resolutions. The ECA has an annual obligation to report on any contingent liabilities arising.
So far, the SRF has not been called upon, but there are a large number of legal proceedings relating to a first resolution and other decisions, as well as ex-ante contributions to the SRF. For the financial year 2019, the SRB reported contingent liabilities relating to some 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 note that subsequent judgments in 2020 may have implications for contributions to the SRF.
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 this Regulation for the financial year 2019