The need for resolvable banks
The global financial crisis has demonstrated that both small and large banks can run into trouble. Governments were forced to use taxpayers' money on a large scale for bank bailouts. This affected public finances, and was one of the causes of the European sovereign debt crisis. The need to improve banks' resolvability was clearly highlighted.
The financial crisis resulted in tighter European supervision, the creation of the resolution regime, and enhanced national deposit guarantee schemes. It also led to the creation of the euro area banking union, to ensure the common implementation of prudential supervision and resolution. This may be complemented by a European DGS in the future.
In 2015, DNB was designated as the national resolution authority for the Netherlands. In that capacity, DNB works within the European Single Resolution Mechanism together with the Single Resolution Board (SRB) and other national resolution authorities. The resolution authority strives to achieve the orderly resolution of failing banks, so as to ensure the continuation of critical functions such as payment systems, credit provision, but also household access to savings.