An essential condition for economic growth and the prosperityof citizens is the uninterrupted access of individuals and businesses to the financial system, even in the event that a credit institution is failing or likely to fail.
The Bank of Greece has been designated as the national resolution authority for the credit and financial institutions under its supervision.
Resolution is the application of measures in respect of a credit institution that has been determined by the competent supervisory authority as failing or likely to fail.
Resolution is aimed to achieve one or more of the following objectives:
- to ensure the continuity of critical functions;
- to avoid significant adverse effects on financial stability;
- to protect public funds by minimising reliance on extraordinary public financial support;
- to protect depositors and investors covered by deposit guarantee schemes or investor compensation schemes, respectively; and
- to protect client funds and client assets.
In the Greek context, the body responsible for deciding on resolution matters is the Resolution Measures Committee (RMC) of the Bank of Greece.
The Resolution Department of the Bank prepares and submits proposals to the Resolution Measures Committee and oversees the implementation of resolution measures.
As from 1 January 2016, the Bank of Greece is a member of the Single Resolution Mechanism of the euro area Member States.