FROB, the Spanish Executive Resolution Authority (formerly known as Fund for Orderly Bank Restructuring) is an entity of the Spanish government that manages the resolution processes of credit institutions and investment firms in their executive phase in Spain .
10-625: FROB was created in 2009 as a result of the financial crisis. Initially, its aim was to increase the strength and solvency of the Spanish banking system by means of two essential functions at that time: managing the restructuring processes of credit institutions and helping to strengthen their own funds. Today, and since the approval of Law 11/2015, FROB is the Spanish Executive Resolution Authority, financed exclusively with private contributions from banks and which
20-876: A centralised resolution system made up of the national resolution authorities and a single authority - the Single Resolution Board ( SRB ) - the European agency to which many of the powers of the Member States in matters of resolution were transferred. These authorities are joined by the European Central Bank (ECB), the European Commission and the Council in the terms established in the SRM Regulation. Similarly,
30-646: A subset of banks in the euro area and as the institutional hub of the Single Resolution Mechanism (SRM). Resolution is the restructuring of a bank by a resolution authority through the use of resolution tools in order to safeguard public interests, including the continuity of the bank's critical functions and financial stability, at minimal costs to taxpayers. The SRB was established by the EU Single Resolution Mechanism Regulation of 2014. Its leadership
40-553: Is integrated into the European network of authorities led by the Single Resolution Board ( SRB ). Law 11/2015 set up a new institutional framework in order to comply with the principles set out in Resolution Directive 2014/59/EU to separate supervisory and resolution functions and led to a transformation in the organisational structure, governance and functions of FROB. From an operational perspective, in this new stage, FROB continues to be responsible for completion of
50-647: The SRM has a Single Resolution Fund (SRF) that is raised and managed by the SRB with contributions from all the entities of the Banking Union to be used in the case of resolution. Single Resolution Board The Single Resolution Board (SRB) is an EU agency that was established in Brussels in 2015 as part of the broader set of reforms known as the banking union . It acts as the bank resolution authority for
60-746: The area of resolution planning. In June 2017, the SRB took its first decision to take resolution action in the case of Banco Popular Español . In March 2022, the European unit of Sberbank was determined to be failing or likely to fail, in the context of the 2022 Russian invasion of Ukraine and the ensuing EU sanctions against Russian lenders. The SRB decided that Sberbank Europe's Austrian parent entity would go into insolvency, but took resolution action on two subsidiaries in Croatia and Slovenia , which it respectively sold to Hrvatska postanska banka and to Nova Ljubljanska Banka . The Single Resolution Fund (SRF)
70-588: The period until 2023 included, and shall reach the target level of at least 1% of the amount of covered deposits of all credit institutions within the Banking Union by 31 December 2023. By July 2023, the SRF had reached a size of €77.6 billion. The Board, in a narrow sense, is composed of six members : the SRB Chair, the Vice-Chair and four full-time Board Members. These four full-time Board Members as well as
80-766: The restructuring process in progress, which nowadays basically includes monitoring the holdings in BFA- Bankia and Sareb , as well as the guarantees granted in previous sale processes. However, this activity coexists with its new functions as executive resolution authority within the European SRM and cooperating with other Spanish preventive authorities ( Bank of Spain and the National Securities Market Commission, CNMV ), within Spain’s institutional framework. The SRM is
90-538: Was appointed in December 2014. The Board became operational on 1 January 2015, with full assumption of its resolution authority on 1 January 2016. Its early development was supported by the European Commission . It moved to its current office on Treurenberg 22 in central Brussels in late 2015. The initial activity of the SRB was largely about establishing processes and methodologies, particularly in
100-469: Was established by the SRM Regulation. Where necessary, it may be used to ensure the efficient application of resolution tools and the exercise of the resolution powers conferred to the SRB by the SRM Regulation. The SRF is composed of contributions from credit institutions and certain investment firms in the 19 participating Member States within the Banking Union. It is being gradually built up during
#306693