The Court of Auditors highlights the progress that has been made in the SRM since 2015. It considers, despite everything, that "some key elements are missing and further steps are needed in resolution planning for banks".
The Court notes that it is difficult to achieve uniform treatment of banks, not least because the practices of internal resolution teams vary. It believes that internal resolution teams should be required to comply with SRB policies or at least provide explanations (―to apply a comply-or-explain approach‖) if they deviate from these policies.
It is noted that the SRB has assessed the quality of the resolution plans submitted by the National Resolution Authorities (of the less significant banks).
It has insisted on several occasions on the need to have clear, objective and quantified thresholds to determine whether a bank is failing or is likely to fail. We agree that the legal framework could be improved to establish more objective and quantified criteria, but there will always be a margin of discretion in the specific case, whether we like it or not.