The Single Resolution Board (SRB), the European authority tasked with resolving large failing banks within the euro area banking union, made every effort in 2020 to publish sufficient budgetary provisions to meet the financial risks incurred in legal disputes, the European Court of Auditors said in a report published on Tuesday (30 November).
Last year, the SRB reported € 5,561 million (compared to €186 million in 2019 - see EUROPE 12612/9) of possible commitments relating to 41 cases (compared to nine in 2019) pending before the.EU General Court. In these cases, major banks are challenging the amount of their ex-ante contribution to the Single Resolution Fund (SRF), the financial arm of the resolution component of the banking union.
In view of events in 2021, such as the judgment of the Court of Justice of the European Union confirming the legality of EU rules on ex-ante contributions to the SRF (see EUROPE 12764/20), the EU auditors recommend that the SRB reassess the amounts at risk on the basis of a new methodology for all pending cases. It is also invited to re-establish a monitoring of national cases by asking national resolution authorities to assess annually the risk of outflow of economic resources to which it is exposed.
See the Court of Auditors’ report: https://bit.ly/3xAVZHO (Original version in French by Mathieu Bion)