(Finance) – The Single Resolution Board (Single Resolution Board, SRB), the EU bank resolution authority, intends to ensure that the resolution plans of institutions “can be put into practice effectively” and therefore aims to “test and verify that resolution plans work actually in realistic simulations” and will implement “on-site inspections at bank premises“. This was stated by Dominique Laboureix, the body’s new president, in a hearing at the European Parliament.
The SRB was established following the 2007-2009 global financial crisis, when states found themselves having to bail out some lenders. The first phase, Laboureix explained, was to ask the banks for “resolution” plans, but now, after eight years of existence, “it is time for the SRB to enter phase two“, scheduled for 2024-2028.
“I want to see how the SRB might work and deliver better results – he explained – This year we will undertake a strategic review. We will listen to and engage with our people, the wider single resolution mechanism (SRM) community and the industry.”