Resolution funds

Two resolution funds enable effective implementation of resolution instruments: the National Resolution Fund (NRF) and the European Single Resolution Fund (SRF). All banks must contribute to one of these funds.

The NRF was established on 27 November 2015 to support DNB's resolution task. On 1 January 2016, this fund was largely replaced by the SRF. Resolution authorities (DNB and the SRB) can, for example, draw on these funds to issue a loan to a bank in trouble, to guarantee assets or to extend capital to a bridge bank.   

Single Resolution Fund

All banks and investment firms that are subject to the Single Resolution Mechanism (SRM) must contribute to the SRF. The SRF must ultimately comprise 1% of covered deposits in the euro area. According to an estimate of the European Commission, this amounts to EUR 55-60 billion. In eight years (2016-2023), this will be achieved by collecting (partially risk-based) contributions from banks in the countries participating in the SRM. 

National Resolution Fund

Branches of banks registered outside the EEA must contribute to the National Resolution Fund (NRF). This also holds for investment firms that are subject to the start-up capital requirement of EUR 730,000. The NRF is funded by lump sum contributions in the period 2015-2024 and is eventually expected to total EUR 3 million to EUR 4 million. 

Contributions

If you wish to know more about contributions to the SRF and the NRF, please consult our FAQ on contributions.