The Council of the EU has published a press release stating that its Permanent Representatives Committee has approved on its behalf, a compromise text with the European Parliament on a Regulation establishing a single resolution mechanism (SRM) for banks.
The approval allows the European Parliament to approve the compromise text at first reading before it adjourns for elections in May. The Council plans to subsequently adopt the Regulation without further discussion.
The SRM is a key element of the EU banking union along with the single supervisory mechanism (SSM) that entered into force last November. It will cover all banks within the euro area and other Member States those that choose to participate. The UK is not participating.
Once approved, the SRM will apply as follows:
- provisions on the preparation of resolution planning, the collection of information and cooperation with national resolution authorities will apply from 1 January 2015; and
- provisions relating to resolution planning, early intervention, resolution actions and resolution instruments, including the bail-in tool will apply from 1 January 2016, provided that the conditions for the transfer of contributions to the single resolution fund have been met.
View Single Resolution Mechanism: Council confirms deal with EP, 27 March 2014