It is time for the Single Resolution Board (SRB) to step into the limelight and for the authorities to let it rise to the challenge of its task. Despite significant improvement in the health of banks over the last 10 years, stress tests results, money laundering scandals and bank failures indicate that the sector is not free of problems, and that the SRB may be called upon to manage the resolution of a large systemic bank. Policymakers have so far preferred to continue to bail-out banks, rather than to use the SRB for what it was designed. This undermines the credibility of the institution and the single banking market.
This material was originally published in a paper provided at the request of the Committee on Economic and Monetary Affairs of the European Parliament and commissioned by the Directorate-General for Internal Policies of the Union and supervised by its Economic Governance Support Unit (EGOV). The original paper is available on the European Parliament’s webpage. (c) European Union, .