2.6.1.5 National resolution funds

The resolution framework requires each Member State to establish one or more national resolution funds for the purpose of ensuring the effective application by the resolution authorities of the resolution tools and powers.1 The national resolution funds may, inter alia, be used to guarantee the liabilities of a bank in resolution, to make loans to the bank in resolution, or to pay compensation to shareholders or creditors.2 The national resolution funds are funded by banks and investment firms that are in scope of the resolution framework (BRRD investment firms)3, including branches of third country banks and BRRD investment firms.4