On 9 July 2024, the Single Resolution Board (SRB) published its third assessment of banks’ resolvability across the Banking Union.

The headlines from the assessment include:

  • All banks that had to comply with their final minimum requirement for own funds and eligible liabilities (MREL) targets as of 1 January 2024 have met their MREL requirements.
  • In general, banks have a sufficient level of loss absorption and recapitalisation capacity to support bail-in execution.
  • Banks have developed capabilities to estimate liquidity needs under a slow and a fast-moving outflow scenario that they may face throughout resolution.
  • Overall, banks have developed comprehensive contingency plans to maintain access to financial market infrastructure service providers in resolution.
  • Banks have improved most in the areas of governance and communication. In particular, banks have taken measures to ensure that the management body is actively involved in the resolution planning activities in accordance with their multi-annual work programmes.