What are the benefits of the Single Resolution Mechanism in relation to national resolution mechanisms?

Published: 3/6/2020 Modified: 17/5/2022

The Single Resolution Mechanism (SRM) makes it possible for all resolution-related decisions on the entire banking union level to be made centrally, independently and efficiently, particularly in the case of resolution of cross-border groups when coordinated action of several resolution authorities is needed. The SRM is ensuring the orderly resolution of failing banks, while minimising the costs that would be borne by the taxpayers and trying to ensure that the spill-over effect into the wider economy is minimised.