The EC has launched a public consultation to help determine the exact shape of the SRM’s bank levy. The 28 transitional national resolution funds established by the BRRD will be replaced by the Single Resolution Fund (SRF) as of 1 January 2016. SRF “taxes” will be dependent on the size and risk pro-file of each contributor bank. The public consultation covers the following key aspects:
- Group Calculation Level- individual or consolidated?
- Proportionality- differential treatment for small credit institutions? At what threshold?
- Flat vs. Risk-adjusted- relative weighting of the flat risk-adjusted portions of the contribution?
- Risk indicator weightings- relative weight of BRRD risk pillars and their respective risk indicators?
All “stakeholders” are invited to comment, although unsurprisingly input from banks is welcomed. Online participation can be conducted at-
the deadline for which is 14 July 2014. The consultation will inform the September 2014 simultaneous adoption of the BRRD delegated act and the SRF implementing act. The questions speak to the fundamental design of the SRF; whatever one’s perception of the EU’s democratic deficit, full participation is encouraged.
 Memo/14/294. Effective as of 1 January 2015
 Edit- the resolution funds of the 18 Eurozone states will be mutualised during the 8 yr. phase-in. Inclusion of the non-Euro states’ resolution funds is dependent on their voluntary participation in the banking union.Contact Us