The progresses made on banking recovery and resolution; a new legislative and institutional framework since 2015

The latest financial crisis underlined the need to develop a new and effective framework for resolution for entities operating in the European Union and beyond. In this context, the resolution regime has significantly advanced and resulted in the introduction of a new legislative package establishing the Single Resolution Mechanism (SRM), comprising the Single Resolution Board (SRB) and National Resolution Authorities (NRAs) , within the framework of the Banking Union. The SRM constitutes one of the pillars of the Banking Union. It complements the Single Supervisory Mechanism (SSM), the unified system of banking supervision in the Banking Union.