DNB and resolution

DNB is responsible for preparing and executing the resolution of banks that run into trouble. As the national resolution authority, DNB is part of the European Single Resolution Mechanism (SRM).

Resolution means resolving a bank in trouble in a careful and controlled manner, so as to ensure that its critical functions are continued and that its customers retain access to payment services and their savings. Moreover, it aims to prevent other banks from collapsing. Resolution also means it is no longer the government that has to bail out a bank with taxpayers' money, but that shareholders and investors are responsible for bearing the cost of a failing bank.

DNB has compiled a Resolution Compendium which contains information about the resolution framework and the deposit guarantee scheme, the resolution planning process and the resolution- and DGS funds         

Tools and planning

For each bank, DNB prepares a resolution strategy and a resolution plan in advance, to determine the plan of approach should the bank fail. To resolve a bank, DNB has multiple resolution tools at its disposal, such as bail-in by shareholders and creditors or the sale of parts of the bank. We may also decide to let the bank fail. In that case, the Deposit Guarantee System guarantees the deposits of the bank's account holders up to a maximum of EUR 100,000 per account holder.

The resolution mechanism was created in response to the financial crisis, when governments were forced to save failing banks with taxpayers' money. It also became clear that financial institutions were very closely interconnected, and that there was no uniform supervision system within Europe. After the financial crisis, central supervision became the responsibility of the European Central Bank (ECB) and European rules and regulations on resolution were drafted. These rules and regulations are laid down in the Bank Recovery and Resolution Directive (BRRD).

Single Resolution Board

The European Single Resolution Mechanism (SRM) entered into effect on 1 January 2015. It comprises a network of national resolution authorities and a central decision-making body, the Single Resolution Board (SRB) in Brussels. DNB is the national resolution authority for the Netherlands.

Responsibilities of the SRB and DNB

The SRB has a leading role in the resolution of banks under the ECB's direct supervision and banks operating in multiple countries. It draws up the resolution plans for these institutions and decides whether or not a failing bank is to be resolved. If so, we are responsible for executing the resolution. If a bank under our supervision that operates only in the Netherlands fails, we hold primary responsibility for its resolution.

Global resolution policy

The Financial Stability Board (FSB), an international consultative body in which DNB also participates, is developing resolution policy at the global level. The FSB has listed the elements of an effective resolution regime in its Key Attributes of Effective Resolution Regimes for Financial Institutions. The European resolution framework is based on these Key Attributes. 


DNB's resolution task is independent from its supervisory duties, which is why Resolution is a separate division with a separate budget. One member of DNB's Governing Board, Nicole Stolk, is responsible for resolution. She has no direct responsibility for the supervision of banks.