Under the Bank Recovery and Resolution Directive (BRRD) the European Commission is empowered to adopt delegated acts to specify detailed rules for Member States so that their resolution authorities can calculate the contributions of banks to the resolution funds.
The national resolution funds set up under the BRRD as of 1 January 2015 will be replaced by the Single Resolution Fund as of 1 January 2016 and those funds will be pooled together gradually.
Under the Resolution concerning the Single Resolution Mechanism (SRM) the single resolution authority within the EU banking union is required to calculate each year the individual contributions of the institutions subject to the SRM.
The Commission has now adopted a delegated act supplementing the BRRD which will determine how much individual banks will have to pay each year to their respective resolution funds according to the bank’s size and risk profile. The Commission has also drafted a proposal for a Council implementing act to specify the methodology for the calculation of contributions on the basis of the same risk indicators used in the delegated act.
The delegated act is subject to a right of objection by the Council and the European Parliament within three months extendable by a further three months.
The Commission will formally adopt the proposal for an implementing act of the Council after 1 November 2014. The act will have to be discussed and adopted by the Council by the end of the year.
View Commission adopts detailed rules on contributions of banks to resolution funds, 21 October 2014