SRM 10Th Anniversary The single resolution mechanism Ten years of safeguarding financial stability in the EU Since 2015, the Single Resolution Mechanism (SRM) has been a cornerstone of the Banking Union. Its mission: to manage failing banks effectively, maintain financial stability, and protect taxpayers. The global financial crisis showed how fragile the banking system was. When banks failed, taxpayers had to bail them out pushing up national debt, limiting future public spending, and putting entire economies at risk. This created a dangerous doom loop, where weak banks and weak public finances dragged each other down, fuelling even more instability. The EU formally adopts the SRM Regulation, creating the Single Resolution Mechanism. The SRB begins operations, working closely with National Resolution Authorities. 10 July 2013 The European Commission adopts the SRM proposal 15 april 2014 The Council formally adopts the SRM Regulation. 21 may 2014 Intergovernmental Agreement (IGA) 1 January 2015 The Single Resolution Board (SRB) preparatory phase begins. 2016 SRM fully operational. The Single Resolution Fund (SRF) becomes active. The SRB takes on full responsibilities, drafting resolution plans for major banks and setting Minimum Requirements for Own Funds and Eligible Liabilities (MREL) to ensure banks can absorb losses and recapitalise in crisis situations. National authorities do the same for smaller banks under SRB guidance. The SRB starts collecting bank contributions to build the Single Resolution Fund (SRF), a financial safety net funded by the industry, not taxpayers. The goal: to reach at least 1% of covered deposits in the Banking Union by 2024, supporting the orderly resolution of failing banks as part of the SRM’s crisis management toolkit. Goal: 1% of covered deposits. Resolution planning and MREL implementation mature over time, backed by resolvability assessments and progress monitoring tools. These efforts are part of a broader, internationally coordinated response to the financial crisis, ensuring Europe’s banking framework meets global standards for crisis readiness. Progress monitoring tools International coordination Global standards for crisis readiness The SRM faces its first big test: resolving Banco Popular in Spain. The resolution protects depositors, avoids taxpayer costs, and ensures continuity. Today, the SRF has reached €80 billion, fully funded by banks. MREL targets are met. The SRM is ensuring it is ready for any crisis, focusing on robust resolvability assessment, testing and fully operational tools, as well as working closely with European and global institutions. €80 billion MREL targets are met resolution plans The SRM has delivered: stronger banking resilience, protection for public funds, and a proven crisis management system. Looking ahead, completing the Banking Union remains a priority to ensure equal confidence across the EU. At a glance: 10 years of results. making europe’s banks safer and stronger Strengthened financial stability across the Banking Union Ensured failing banks can be resolved without taxpayer bailouts Built up a €80 billion resolution fund, fully bank-financed Boosted banks’ loss-absorbing capacity through MREL Put resolution plans in place for all significant banks Enabled fast, coordinated responses in cross-border crises Enhanced the competitiveness of the EU banking sector through a predictable crisis management framework Reinforced public confidence in the EU banking system Unsupported screen resolution