From 2016, new regulation and a new resolution authority –
the Single
Resolution Board (SRB) – stand to reshape resolution
planning in the Banking Union.
Resolvability is a centrepiece of the new banking regulatory
framework, both within the EU and globally. By ensuring that banks
can fail in an orderly manner, the expectation is that there will
be better alignment between risk-taking and losses, and banks and
regulators will be able to prevent systemic crises.
From January 2016, the SRB will be the resolution authority for
banks in the Eurozone, taking responsibility just as a number of
new tools come into effect (introduced by the EU's Bank
Recovery and Resolution Directive – BRRD). In its work
plan for the coming year, the SRB makes clear that its main
objective will be to "progress towards full resolution
planning capacity". This will include drafting resolution
plans for the banks within its remit, and developing the
resolvability assessments for those Global
