On Wednesday 30 November 2022, the European Court of Auditors (ECA) will publish its annual financial audit report on the financial risk relating to the Single Resolution Mechanism (SRM)
ABOUT THE AUDIT
The European Court of Auditors has an obligation to report each year on any financial risk relating to the Single Resolution Mechanism (SRM), the EU system managing the orderly winding-up of failing banks within the Banking Union.
The SRM is composed by the Single Resolution Board (SRB), the European Commission and the Council. This audit report deals exclusively with contingent liabilities arising as a result of their performance under the SRM Regulation for the 2021 financial year. These financial risks are mainly deriving from legal cases. Since the resolution of Banco Popular Español in 2017, litigation has been brought at EU and national level on numerous occasions. There is also pending litigation concerning banks' contributions to the Single Resolution Fund (SRF), a fund which can be used to support bank resolutions.
The auditors will provide a detailed overview of the financial risks, and recommend further improvements to the monitoring and calculation of possible financial consequences.
Former ECA member Rimantas Šadžius led the audit during his mandate, which ended on 15 November 2022.
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