The Flow of Information Among Authorities Involved in the Banking Union’s Resolution Procedure: The Case of the SRB and the ECB
6 Pages Posted: 6 Aug 2020
Date Written: July 9, 2020
The flow of information is vital for the smooth functioning and certainty of the successful outcome of a resolution procedure during resolution planning and execution. As a result, the exchange of relevant information has become highly influential in current debates. This article will focus on the exchange of information between the Single Resolution Board (SRB) and the European Central Bank (ECB).
Firstly, the Authorities decided to arrange the rules for sharing information bilaterally in the form of a Memorandum of Understanding (MoU). While this framework of cooperation and exchange of information between the SRB and the ECB constitutes an obligation under Article 30(7) of the Single Resolution Mechanism Regulation (SRMR), it was drafted in the non-binding form of an MoU. The general purpose of an MoU is to establish the basis for cooperation and convergence of intentions. Such foundations aim to strengthen the resolution procedure by joining forces to obtain more accurate and complete data with better coordination of tasks and resources in order to achieve the most solid result possible within a tighter timeframe.
Keywords: bank resolution, SRB, ECB, MoU, information
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