On Thursday 14 September, the European Commission adopted new rules on the financing of the administrative expenditure of the Single Resolution Board (SRB), the EU agency responsible for the resolution of failing Eurozone banks.
The SRB has its own budget, which is separate from the general EU budget and fed into by annual contributions from the banks to cover its administrative costs. Since its creation in 2014, the SRB has received only advance payments from major banks, in line with the provisional financing system laid down by the Commission. As the European agency became fully operational on 1 January 2016, extending its infrastructure and human resources, it is now necessary to adopt a final funding system.
“A strong Single Resolution Board with sufficient resources and highly qualified staff is essential for the Single Resolution Mechanism to function properly and protect financial stability without the cost to taxpayers' money”, the institution states in a press release.
The new rules, which take the form of a delegated act, now require all Banking Union banks to contribute to the SRB's running costs in proportion to the resource requirements they impose on it, in other words in proportion to their size and the risks presented by their activities.
The new calculation method stipulates that before contributions are allocated to banks individually, the total amount is divided between the 142 major European banks under the direct responsibility of the SRB (at a level of 95%) and the less significant banks under the responsibility of the national resolution authorities (5%).
Banks that have paid advances for the period between 2015 and 2017 will be reimbursed if they have paid too much, whilst other banks will have to make top-up payments.
According to the Commission, this final system is viable as it gives the SRB an “off-the-shelf' solution”. It is based on the supervision fees paid by banks to the European Central Bank, which means that they are already familiar with the calculation methodology, the institution adds.
The new rules will apply from 2018, notwithstanding any express objections from the European Parliament or the Council. (Original version in French by Marion Fontana)