Once the ECB has declared a bank failing or likely to fail, another body takes over: the Single Resolution Board, SRB for short. It is the SRB that decides how to deal with the bank. In a nutshell, this is how we handle failing banks in Europe. Once you start looking at the details, it becomes much more complex, of course.
It requires all parties involved to closely cooperate. And it requires all parties, including the banks, to be well prepared. That’s why it is so important for banks to carefully draft their recovery and resolution plans. But as I said, recent experience has shown that our approach works.