Single Resolution Fund (SRF)

What is the SRF?

The Single Resolution Fund (SRF) was established on 1 January 2016. Institutions that come within the scope of the Single Resolution Mechanism (SRM) Regulation are required to make contributions to the SRF rather than to national resolution funds.  In resolution actions the SRF may, subject to conditionality, be used to:

• Guarantee the assets or the liabilities of an institution under resolution
• Make loans to or to purchase assets of an institution under resolution
• Make contributions to a bridge institution and an asset management vehicle
• Make a contribution to an institution under resolution in lieu of the write-down or conversion of liabilities of certain creditors under specific conditions
• Pay compensation to shareholders or creditors who incurred greater losses in resolution than under normal insolvency proceedings.

Who is liable to pay?

Banks and investment firms that are in the scope of the SRM Regulation are obliged from 1 January 2016 to contribute to the SRF.

How is the levy calculated?

• The Single Resolution Board (SRB) in Brussels calculates the contributions for the SRF, based on the data submitted by institutions.
• As a rule, institutions with higher risk profiles will pay a larger contribution.
• Commission Delegated Regulation (EU) 2015/63 as amended by Commission Delegated Regulation (EU) 2023/662 contains detailed provisions on how the contributions should be calculated. These rules are complemented by Council Implementing Regulation (EU) 2015/81.
   

Levying Process

Fund Reporting Form for Contributions

A Fund Reporting Form for Contributions (reporting form) is to be populated by the institutions each year in order for the Central Bank to gather the data required to calculate the institution’s levy.

1. Institutions are required to generate the reporting form in XBRL format and populate  it with the institution’s financial information at the reference date, which corresponds to the balance sheet date of the latest approved annual financial statements available before 31 December of the year prior to the contribution period. The SRB 2024 Guidance Document contains general instructions related to the completion of the reporting form.
2. Once the reporting form is complete, institutions are required to submit it to the Central Bank by uploading it to the Central Bank’s online reporting system (ONR) by early January of the following year.
   As the Central Bank is assisting the SRB by collecting the completed reporting form from in-scope institutions in Ireland, the Central Bank passes the completed reporting form to the SRB. 

The SRB has provided the following documents for the 2024 Contribution Period:

1. SRB 2024 Letter to Institutions
2. SRB-ES-2023-46 Decision on the Data Reporting Form_Additional Assurance
3. SRB-ES-2023-46 ANNEX I 2024 Data Reporting Form
4.  SRB-ES-2023-46 ANNEX III 2024 Guidance document

SRF Additional Assurance

The SRB requires that the information provided is subject to review.

Institutions that are part of a group referred to in Article 7(2)(a) of the SRM Regulation that fall under direct ECB supervision (unless the institution is a small institution subject to the lump-sum levy under Article 10 of the Commission Delegated Regulation (EU) 2015/63) are required by the SRB to provide confirmation by an external auditor on specific Agreed Upon Procedures.

Approved Annual Financial Statements

Institutions are required, when submitting the completed reporting form, to submit their approved annual financial statements (in pdf format) which correspond to the reference date of the reporting form by early January of the following year.

Levy notices are issued to institutions by the Central Bank on or before 1 May each year.
Institutions are required to make payment to the Central Bank in June each year. The Central Bank transfers the collected levies to the SRF by 30 June each year.

Queries

Any questions or requests for additional information can be addressed to the Central Bank and submitted by email: [email protected].

View the SRB’s Single Resolution Fund webpage for more information.