Crisis management

If a bank experiences financial difficulties, it is crucial that supervisors intervene as early as possible and coordinate their responses effectively. This helps preserve financial stability and minimises reliance on public funds.

Effective corrective measures

In our supervisory role, we can react quickly when a bank does not meet, or is likely to breach, the Capital Requirements Regulation and the Capital Requirements Directive.

Supervisory measures

We ensure that banks have reliable recovery plans in place, and we review these plans on a regular basis. We also use a range of other methods to analyse banks from a supervisory perspective, including benchmarking, quality control and consistency checks.

Resolution planning and procedures

The interaction between the European banking supervision, the Single Resolution Board and national resolution authorities is structured around three main pillars:

• complementarity of institutional roles
• mutual cooperation
• strong coordination

We play a consultative role in resolution assessment and planning under the Bank Recovery and Resolution Directive and the Single Resolution Mechanism Regulation.

Resolution authorities are responsible for deciding on the appropriate resolution action on a case-by-case basis. We cooperate closely with the respective resolution authorities and notify them about the failure, or likely failure, of a bank.

Crisis Management Groups aim to increase cooperation and coordination among home and key host authorities of all global systemically important institutions.

These authorities include:

• supervisory authorities
• central banks
• resolution authorities
• finance ministries
• public authorities responsible for guarantee schemes

Crisis Management Group members cooperate closely with authorities of other countries in which firms have a systemic presence.

Key attributes of effective resolution for financial institutions

Key tasks

Crisis Management Groups enhance coordination and cooperation between home and host authorities of global systemically important institutions:

• they prepare for the effective management and/or resolution of an institution
• they carry out recovery and resolution tasks – for example, managing recovery and resolution plans