By Charlotte GAUCHON
6 May 2025
At the heart of the Banking Union, the Single Resolution Mechanism (SRM) has been set up to manage the failure of the largest banks in the participating Member States in a centralised and harmonised way. This mechanism, which is built around the Single Resolution Board (SRB) and the Single Resolution Fund (SRF), is a major step forward in building a more resilient European banking sector and aims to preserve financial stability without placing the burden of crises on taxpayers. Understanding its architecture and components has become essential for economic and financial players. What is the Single Resolution Mechanism (SRM)? The SRM is one of the essential pillars of the Banking Union, complementing the Single Supervisory Mechanism (SSM), which entrusts the European Central Bank (ECB) with the prudential supervision of the main banks in the eurozone and the other participating Member States. The fundamental objective...
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