To be clear, this would not imply that banks have to pay higher fees. The fund would still only reach its target level after 10 years, yet it would be a truly single fund after five years. Another issue that needs clarifying is what backstop arrangements will be in place in this transition period, and also in the steady state.
What makes resolution authorities credible is the knowledge that, when private sector solutions do not suffice, they can draw on temporary public bridge financing. This steadies expectations and supports financial stability. Indeed, the job of a resolution authority could become more complicated if there are doubts about the adequacy of its resources in times of systemic stress.