The European Commission has launched a consultation on the contributions of credit institutions to resolution financing arrangements under the Bank Recovery and Resolution Directive (the BRRD) and the Single Resolution Mechanism (the Single Resolution Fund, the SRF).
The consultation asks questions on a number of issues including those relating to:
- the level at which the contributions of groups are calculated;
- whether small credit institutions should be treated in a special way compared to what they would pay on the basis of a general formula that would apply to all credit institutions; and
- the respective weight of each risk pillar, as set out in the BRRD, and of each risk indicator within each risk pillar.