Published: 26.11.2022 Updated: 19.04.2023

The Single Resolution Mechanism has been operational in the European Union since 2016, when the Regulation of the European Parliament and of the Council on the Single Resolution Mechanism entered into force in full.

The resolution mechanism was established pursuant to Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 (Bank Recovery and Resolution Directive) on the recovery and resolution of credit institutions and investment firms This directive provides for common resolution tools and resolution powers available to the resolution authorities of each Member State, but leaves it in discretion of the resolution authorities of the Member States to apply these tools and use national financing arrangements for the support of the resolution procedures.

In Latvia, the provisions of this directive have been fully introduced in the Law on Recovery and Resolution of Credit Institutions and Investment Firms. 


National Resolution Fund