On 15 April 2014, the European Parliament adopted the Single Resolution Mechanism ("SRM") Regulation which will implement a SRM for Eurozone banks. The SRM Regulation is part of the new European Banking Union which applies to financial institutions in the Eurozone. The SRM Regulation establishes set of common resolution tools that are mandatory for Eurozone member states to insert into their national laws and provides for coordination in the use of those tools through a Single Resolution Board. The Board will also establish a Single Bank Resolution Fund which will be funded by levies from relevant financial institutions and which is intended to support failing banks during their resolution or restructuring. The resolution tools under the SRM Regulation mirror those available under the BRRD.
The European Parliament's press release is available at: http://www.europarl.europa.eu/news/en/news-room/content/20140411IPR43458/html/Parliament-lifts-bank-bailout-burden-fromtaxpayers%E2%80%99-shoulders.
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