Single Resolution Mechanism to come into effect for the Banking Union

EU News 396/2015

Brussels, 31 December 2015

The Single Resolution Mechanism (SRM) will become fully operational on 1 January 2016. The SRM implements the EU-wide Bank Recovery and Resolution Directive (BRRD) in the euro area. The full resolution powers of the Single Resolution Board (SRB) will also apply as of 1 January 2016.

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The EU has taken significant steps to address the root causes of the financial crisis, to ensure that banks are now much better capitalised and more effectively supervised and to identify risks that may be building in the system. But despite closer supervision and a greater emphasis on crisis prevention, there may still be cases of banks getting into difficulty. The SRM Regulation establishes the framework for Member States participating in the Banking Union when banks need to be resolved.

Source and additional information:
http://europa.eu/rapid/press-release_IP-15-6397_en.htm?locale=en

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