Proposal for a Council Implementing Regulation specifying uniform conditions of application of Regulation (EU) No 806/2014 of the European Parliament and of the Council with regard to ex-ante contributions to the Single Resolution Fund

Regulation (EU) No 806/2014 establishing uniform rules and uniform procedures for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund (‘SRM Regulation’) provides for the establishment of the Single Resolution Fund (‘Fund’) which is owned and administrated by the Single Resolution Board (‘Board’), also established by the SRM Regulation. The Fund, as part of the Board’s budget is financed through contributions from the banking sector of the Member States participating in the SRM.

A sufficiently funded Single Resolution Fund is essential for the SRM to function properly and protect financial stability without recourse to taxpayers' money. It is also in the interest of the banking sector that the Fund has the necessary resources to intervene where necessary in resolution procedures to ensure the effective application of the resolution tools.

Under Article 70(7)(a) and (b) of the SRM Regulation, the Council, acting on a proposal from the Commission, is empowered to adopt implementing acts on the contributions to the Fund in particular in relation to the application of the methodology for the calculation of individual contributions and the practical modalities for allocating to institutions the risk factors specified in the Commission Delegated Regulation (EU) No xxx/2014 with regard ex-ante contributions to the resolution financing arrangements.

This proposal from the Commission for a Council implementing act specifies the manner in which the additional risk adjustment component of the annual contribution and the methodology for the application of the risk adjustment to the basic annual contribution provided for in the Commission delegated Regulation (EU) No xxx/2014 with regard to ex-ante contributions to the resolution financing arrangements has to be applied when calculating the annual contributions by the Board in order to adapt the methodology laid down in that delegated act to the specificities of a unified system of contributions pooled into a single Fund on the basis of a European target level.

• Primary Source

EUR-Lex: COM(2014)710: Follow the progress of this proposal through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2014:710:FIN

ESO: Background information: Commission adopts detailed rules on contributions of banks to resolution funds http://www.europeansources.info/record/press-release-commission-adopts-detailed-rules-on-contributions-of-banks-to-resolution-funds/

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