The Single Resolution Fund (SRF) relies on banks to collect the necessary funds for resolution, avoiding the need to use tax payers’ money. However, the current methodology used to determine the SRF contributions is difficult to replicate, complex and not fully coherent with the remainder of the resolution framework and capital requirements. This has required the Single Resolution Board (SRB) to recalculate the contributions several times and various banks to challenge the contribution methodology in court.
A new CEPS study proposes an alternative methodology that could potentially address the challenges with the current SRF contribution methodology. The alternative methodology reduces and simplifies the number of indicators used and contributors. Additionally, the alternative methodology significantly reduces the number of risk-adjusted contributors and is more risk-sensitive.
During this CEPS webinar the study proposing an alternative methodology will be presented and discussed with key stakeholders.