Einde inhoudsopgave
State aid to banks (IVOR nr. 109) 2018/4.2.3
4.2.3 The added value of the SRM
mr. drs. R.E. van Lambalgen, datum 01-12-2017
- Datum
01-12-2017
- Auteur
mr. drs. R.E. van Lambalgen
- JCDI
JCDI:ADS592948:1
- Vakgebied(en)
Financieel recht / Europees financieel recht
Mededingingsrecht / EU-mededingingsrecht
Voetnoten
Voetnoten
See also Art. 5 SRM-Regulation which provides that where, pursuant to the SRM-Regulation, the SRB performs tasks and exercises powers, which, pursuant to the BRRD are to be performed or exercised by the national resolution authority, the SRB shall, for the application of the SRM-Regulation and of the BRRD, be considered to be the relevant national resolution authority.
This viewpoint was expressed by the European Council and reiterated by the Commission in recital 12 of the SSM-Regulation.
However, also with regard to these bank, the SRB may, pursuant to Art. 7(4)(b) SRM- Regulation, exercise directly all of the relevant powers under the SRM-Regulation. Pursuant to Art. 7(5) SRM-Regulation, participating Member States may decide that the SRB exercise all of the relevant powers and responsibilities conferred on it by the SRM-Regulation in relation to the ‘non-significant banks’.
Recital 10 SRM-Regulation.
To a large extent, the SRM-Regulation is based on the BRRD. In that regard, recital 18 of the SRM-Regulation even provides that in order to ensure a level playing field within the internal market as a whole, the SRM-Regulation is consistent with the BRRD.1 But where the BRRD introduces national resolution authorities and national resolution financing arrangements, the SRM- Regulation introduces a Single Resolution Board (SRB) and a Single Resolution Fund (SRF). The creation of the SRB and the establishment of the SRF constitute the added value of the SRM.
Firstly, because of the creation of the SRB, the SRM provides for a centralisation of decision-making. In its Proposal for a SRM-Regulation, the Commission already explained the need for the SRM in addition to the BRRD by pointing out that in the Banking Union, bank supervision and resolution need to be exercised by the same level of authority.2
Within the SRM, the SRB and the national resolution authorities cooperate. The division of tasks within the SRM is set out in Art. 7 SRM-Regulation. Pursuant to Art. 7(2), the SRB is responsible for significant banks and for other cross-border banks. Other banks fall under the responsibility of the national resolution authorities.3
Secondly, because of the establishment of the SRF, the SRM breaks the negative feedback loop between bank and governments. In recital 10 of the SRM- Regulation, it is indicated that since the BRRD provides for national financing arrangements, it does not sufficiently reduce the dependence of banks on the support from national budgets.4 By contrast, the SRF breaks the link between sovereigns and the banking sector.