As we all know, the swift and orderly resolution of cross-border banks is the Achilles heel that needs to be addressed. The framework for the Single Resolution Mechanism is still to be defined and I look forward to the Commission’s upcoming legislative proposal. Let me nevertheless highlight the main features that in my view such a Mechanism should have.
It would have the same institutional and geographical scope as the SSM. The SRM would be an operationally decentralised system, where the ultimate responsibility rests with a Single Resolution Authority. The Single Resolution Authority would be at its centre, govern the resolution of banks and coordinate the application of resolution tools.