Bulgaria and Croatia set to join the Single Resolution Mechanism

Published: 13/7/2020

SRB Press Release published on 13 July 2020

Bulgaria and Croatia will join the Single Resolution Mechanism, following the decisions by the European Central Bank to establish close cooperation with the Bulgarian National Bank (Българска народна банка) and Croatian National Bank (Hrvatska narodna banka).

From 1 October 2020, the ECB will directly supervise the two countries’ largest banks, known as significant institutions, and the Single Resolution Board (SRB) will become the resolution authority for these and all cross-border groups. The SRB will also oversee resolution planning for smaller banks, known as less significant institutions.

“We are happy to welcome two new members to the Single Resolution Mechanism and have been working closely with the Bulgarian and Croatian authorities to prepare for this Banking Union milestone,” said Chair Elke König.

The Single Resolution Mechanism, made up of the SRB and the national resolution authorities in Banking Union countries, protects financial stability and the taxpayer by planning for and managing bank failures. The SRB and the national resolution authorities in Bulgaria and Croatia are well prepared for a smooth transition to the new resolution regime.

Banks and some investment firms in the two countries will also contribute to the Single Resolution Fund, which supports bank resolutions.

As national resolution authorities of the two Banking Union Member States, the Bulgarian and Croatian National Banks will have representatives in the SRB’s Plenary Session and Extended Executive Sessions with the same rights and obligations as all other members, including voting rights.

Bulgarian National Bank press release

Croatian National Bank press release

About the Single Resolution Board

The Single Resolution Board (SRB) is the central resolution authority within the Banking Union, which at present is the 19 Eurozone states. Together with the national resolution authorities it forms the Single Resolution Mechanism. The SRB works closely with the European Commission, the European Central Bank, the European Banking Authority and national authorities. Its mission is to ensure an orderly resolution of failing banks, protecting the taxpayer from state bail-outs, which promoting financial stability.