At the end of the third quarter of 2024, no euro area bank within the single resolution mechanism was falling short of its minimum requirement for own funds and eligible liabilities (Mrel), according to Single Resolution Board chair Dominique Laboureix. He confirmed that only four banks, due to special circumstances, still had time to reach full Mrel capacity. Laboureix described this as “a great achievement,” highlighting the progress made in strengthening bank resilience.

Speaking before the European parliament’s economic and monetary affairs (Econ) committee on 3 March 2025, Laboureix also that the EU’s single resolution fund (SRF) remained at full capacity. He stated that, unless conditions changed, banks would not need to contribute to the fund in 2025, as was the case in 2024. The SRF currently holds a financial buffer of €80bn, reinforcing the banking union’s ability to handle crises.

Additionally, the SRB has been implementing a new inspection framework. Laboureix confirmed that the first onsite inspection had been finalised and that the second would commence the following week. He reaffirmed his commitment to expanding this tool, noting that it had now been successfully introduced.

Reflecting on the SRB’s progress over the past decade, Laboureix emphasised that the European financial landscape had undergone significant changes, marked by volatility and evolving regulatory priorities. He identified three key themes shaping the policy debate: simplification, competitiveness and volatility.

Laboureix welcomed efforts to simplify financial regulation, arguing that legislative changes should focus on removing redundant rules while maintaining regulatory objectives. He urged policymakers to use the crisis management and deposit insurance (CMDI) framework to improve the effectiveness of the banking resolution process. He advocated for additional tools, such as a deposit guarantee scheme (DGS) bridge, which could be deployed quickly during a crisis. He also called for a revision of technical requirements, including the complex bail-in recognition clauses outlined in article 55 of the bank recovery and resolution directive (BRRD), which he described as unnecessarily burdensome.

In his remarks, Laboureix supported recent proposals by the Econ committee to streamline foreign direct investment screening during resolution procedures. He warned that excessive scrutiny in such situations could slow down decision-making during critical periods.

He also underscored the importance of a competitive and functional resolution framework, stating that CMDI reforms were essential for maintaining financial stability and protecting the real economy. He pointed to the United Kingdom’s response to the 2023 banking crises, noting that its proposed reforms aligned with CMDI’s objectives. Laboureix warned that overly complex resolution processes could shift the financial burden of future crises onto taxpayers.

Addressing the broader economic environment, he described the current period as highly volatile. While avoiding macroeconomic projections, he stressed that an effective resolution framework was crucial for maintaining financial stability and preventing bank bailouts.

Laboureix concluded by urging the European parliament and the council to reach a compromise on CMDI reforms. He argued that a streamlined and effective resolution framework would not only safeguard financial stability and public finances but also support the long-term competitiveness of European businesses.