Single Resolution Fund "needs to be duly funded," ECB's Costa says

ECB Governing Council member Carlos Costa urged the EU on Monday to rapidly scale up the European bank resolution fund, Reuters reported. The Single Resolution Fund (SRF) “needs to be duly funded,” Costa said according to the news agency.

The SRF will assume residual bank resolution costs as from this year. It will be supplied from the levies paid by the banks to the national compartments of the fund, whose means will be gradually mutualised. During the build-up phase, SRF resources are unlikely to be sufficient for a resolution. See also our cepPolicyBrief on the matter.