Single Resolution Mechanism (SRM)

What is Single Resolution Mechanism (SRM)?

Single Resolution Mechanism (SRM) definition and meaning on Finance terms:
A mechanism proposed by the European Commission, which establishes uniform rules and a uniform procedure for the resolution of credit institutions established in the banking union. It is envisaged that it will be composed of a single resolution board and national resolution authorities in participating Member States, with ultimate decision-making power at the European level. For the purposes of resolution, the SRM will have at its disposal a single resolution fund. The SRM is a necessary complement to the Single Supervisory Mechanism in order to achieve a well-functioning banking union. See also
Single Supervisory Mechanism (SSM)<