Tuesday | 01 Dec 2020
CEPS Project

Impediments to resolvability of banks?

Banking Union Scrutiny

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The feasibility and credibility of bank resolutions depends, among others, on whether the impediments to resolvability are addressed or removed. Based on the limited public information available, this paper assesses the current state of the identification and removal of impediments to the resolvability of banks under the remit of the Single Resolution Board (SRB). The main findings suggest that the inclusion of the impediments assessment is taking the SRB more time than originally foreseen, there is a greater dependence on banks to address or remove impediments and that the non-resolvable banks are not notified to the EBA. This document was provided by the Economic Governance Support Unit at the request of the ECON Committee.

This project was awarded under the Framework Service Contract for the provision of external expertise in the field of banking resolution (n IP/A/ECON-BU/FWC/2015-057/LOT2) with the European Parliament. The full list of CEPS’ Framework Contracts is available here.

Willem Pieter De Groen

Research Fellow and Head of Financial Markets and Institutions Unit

+32 (0)2 229 39 57