Scope of application:
- The Single Resolution Fund, which is managed by the Single Resolution Board, is used to finance the resolution of the following entities:
- all credit institutions whose head office is located on French territory, excluding overseas countries and territories (notion in European law covering Member States' departments and collectivities that are not party to the European Union. In the case of France, this means Wallis and Futuna, French Polynesia, New Caledonia, Saint Pierre and Miquelon, and Saint Barthélemy);
- all investment firms whose head offices are located on French territory (excluding the overseas countries and territories), are subsidiaries of a credit institution deemed "significant" under the European SSM mechanism, and are required to have initial capital of at least EUR 730,000.
- The National Resolution Fund can be used to finance the resolution of credit institutions whose head office is located in the French overseas countries and territories, subsidiaries of third-country credit institutions, investment firms required to have initial capital of at least EUR 730,000 and which do not fall within the scope of the SRF, and Monegasque credit institutions.
The European legislative texts specify that the target level for each fund, to be reached by 2024, should be at least 1% of the amount of covered deposits of all participating institutions. According to SRF estimates, the fund should reach EUR 55.7 billion by 2023. 40% of the funds in the SRF were mutualised as of 2016, and this should rise to 60% in 2017 then to 70% in 2018. The NRF is expected to have available means of over EUR 60 million by 2024.