If these three steps are still insufficient, ex post contributions from the institutions authorised in the affected Member States will be used. However, if such contributions are not immediately accessible, including for reasons relating to financial stability, the Board may exercise its power to contract borrowings or other forms of support for the Fund, or to make temporary transfers between national compartments. BIS central bankers’ speeches  Banking Union and European Integration I mentioned before that the Banking Union complementing Monetary Union will have farreaching implications for European integration in general as it implies a vast sharing of sovereignty. European construction is still under the grips of the Jean Monnet functional method of integration: at each new reform step, other become logical and pressing. Regarding Banking Union itself, the other element that should complement centralised supervision and bank resolution in a banking union concerns a centralized deposit insurance scheme. Such a scheme would have several benefits. It would be commensurate to the centralized supervisory regime, and ensure that decisions that are taken on a centralized level affect depositors in all countries in the same way, thus ensuring a level playing-field. Depositors would be treated in a uniform way across countries, independently of their location and the location of the bank to whom they have entrusted their savings.13 What was achieved in December 2013, when the co-legislators agreed on the Deposit Guarantee Scheme Directive (DGSD) was only a little part of what in the end will be necessary.
from assessing the resolvability of banks and drawing up resolution plans, to deciding on resolution schemes for failing banks and whether to make use of the Fund in such cases. These tasks are shared between the Board at the European level, which is directly responsible for all banks under direct ECB supervision and all cross-border banks, and the national resolution authorities, which are responsible for the other banks. However, the Board may at any time decide to directly exercise all the relevant powers under the Regulation with regard to any of the indirectly supervised banks. In addition, the Board also becomes directly involved whenever a resolution of an indirectly supervised bank will make use of the Fund. Finally, there is also an option for Member States to choose that the Board will be responsible for all banks in their jurisdiction. These features make the SRM a single system. The Single Resolution Board At the centre of the SRM there needs to be a single authority with operational independence and sufficient decision-making authority to take resolution action in the interest of the euro area and of the Union as a whole. This is achieved with the setting up of the Single Resolution Board. The Board will meet in two different compositions: the plenary and the executive sessions. The executive session will consist of a Chair, four independent full-time members and two observers from the Commission and the ECB, respectively.