13 July 2020
Bulgaria set to join the Single Resolution Mechanism
Bulgaria will join the Single Resolution Mechanism, following the decision by the European Central Bank to establish close cooperation with Българската народна банка (the Bulgarian National Bank)1.
From 1 October 2020 the ECB will directly supervise Bulgaria’s significant institutions, and the Single Resolution Board (SRB) will become the resolution authority for these and all cross-border groups. The SRB will also oversee resolution planning for smaller banks, known as less significant institutions.
The Single Resolution Mechanism, comprising the SRB and the national resolution authorities in Banking Union countries, protects financial stability and the taxpayer by preparing resolution plans for managing failing banks. The SRB and the national resolution authorities in Bulgaria are well prepared for a smooth transition to the new resolution regime.
Banks in Bulgaria will also contribute to the Single Resolution Fund, which supports bank resolutions.
As national resolution authority of Bulgaria, the Bulgarian National Bank will have representatives in the SRB’s Plenary Session and Extended Executive Sessions with the same rights and obligations as all other members, including voting rights.