Single Resolution Mechanism (SRM)

The Single Resolution Mechanism (SRM) is a framework in the European Union designed to manage the failure of banks in a way that protects taxpayers and maintains financial stability. Established in response to the financial crisis, it enables a central authority to handle troubled banks efficiently, ensuring that stakeholders share the burden without using public funds. The SRM works alongside national resolution authorities and aims to resolve banks quickly and effectively, minimizing disruption to the economy and ensuring that depositors are protected.