The collapse of the Silicon Valley Bank as well as the liquidity problems of the Credite Suisse Bank and its takeover by the UBS caused a great unsureness in the financial sector.
When system relevant and cross border active credit institutions become insolvent due to financial difficulties, this endangers the stability of the financial market. In the frame of the EU the experiences from the financial crises 2007 and 2009 revived the Single Resolution Mechanism. It should ensure that in the case of failure of one of the system relevant European bank the owners and creditors guarantee for the costs and for the sanation no financial means from the public money must be used.
The Single Resolution Fund (SRF ) is the financial supporter of the above mentioned mechanism. It is financed by the yeary fees of the banks.When the means of creditors, shareholders and big depositors of a certain credit institution in the process of a successful sanation are not sufficient, the SRF is activated.
The Single Settlement Mechanism applies only to the bigger banks in the Euro cone and also to Bulgaria, on 1st January, 2023 their number was 115. For all other institutes however the respective national resolution authorities are competent. In Austria the control authority for financial market is FMA.
