On 3 July 2019, the Single Resolution Board (SRB) published a paper outlining its approach to public interest assessment.
The identification of public interest is a necessary pre-condition for taking resolution action in respect of a failing bank. Whenever the SRB concludes that there is public interest in resolving a bank and adopts a resolution scheme, it transmits the resolution scheme to the European Commission for endorsement. The Commission can either agree with the public interest assessment of the SRB or may propose to the Council to object to the resolution scheme on the ground that the public interest condition is not met. In contrast, when the SRB concludes that there is no such public interest, the SRB’s decision not to place the bank under resolution is directly communicated to the national resolution authority.
This document sets out the factors the SRB takes into account when conducting a public interest assessment and explains how the SRB applies the criteria as set out in EU law. The publication is aimed at providing more transparency and certainty for banks and the markets.