In a judgment delivered on Wednesday 10 April (Case T-411/22), the General Court of the European Union annulled the decision of the Single Resolution Board (SRB) setting the 2022 ex ante contribution of French bank Dexia to the Single Resolution Fund for infringement of Regulation (806/2014) establishing the single resolution mechanism within the banking union in the euro area.
Dexia is challenging the legality of the decision (SRB/ES/2022/18) of the SRB, the European authority responsible for resolving large European banks if they fail, which set its ex ante contribution for 2022 to the Single Resolution Fund (SRF), the financial arm of the ‘resolution’ strand of the banking union.
When the SRB calculates the ex ante contributions of individual banks for a given year, it must ensure that the total amount of these contributions does not exceed 12.5% of the forecast final target level. For 2022, the SRB had forecast a final target level for the SRF of €80 billion and had set the total amount of annual ex ante contributions from authorised banking institutions at close to €14 billion, when it should have been less than €10 billion.
However, the Court considers it necessary to maintain the effects of the SRB’s decision until the SRB has taken the necessary measures to implement the judgment, but for no longer than six months from the date of the Court’s judgment.
To see the EU General Court ruling, go to https://aeur.eu/f/boc (in French) (Original version in French by Mathieu Bion)