“Crisis management in uncertain times – how we can build resilience” was the subject of the 31st zeb.Financial Market Roundtable in Frankfurt. Dr. Karen Braun-Munzinger, Member of the Single Resolution Board (SRB), the European resolution authority for distressed banks, delivered a keynote speech to an exclusive circle of guests from the Bundesbank, the European Central Bank and CEOs of Frankfurt banks at the Sofitel Frankfurt Opera Hotel.

In his welcoming address, host Dr. Robert Ellenbeck, Partner at zeb, emphasized Dr. Braun-Munzinger’s clear stance: the strict resolution system – following the principle of “same business, same risks, same rules” – must not be called into question. As the guardian of financial market stability in Europe, the SRB must remain capable of acting – also in the area of conflict between European interests, national particularities and the interests of individual credit institutions.

Dr. Braun-Munzinger began her keynote with an optimistic outlook on the future of bank resolution, outlining that, as part of the new strategy, a new phase was beginning in which the focus was on the practical implementation of resolution strategies. The SRB would carry out more crisis exercises, simplify decision-making processes and expand its cooperation with national authorities. Internally, too, more ongoing training, mobility and better use of talent were a priority, she added. New risks such as cyberattacks and the role of unregulated financial players were given greater consideration.

Dr. Braun-Munzinger then spoke about the challenges of the coming years, arguing that resolution had to work across borders and liquidity had to be available quickly, as recent crises in the USA and Switzerland had shown. The SRF was well built-up and the planned common backstop via the ESM provided a further safety net. Nevertheless, banks needed to be prepared, for example by mobilizing collateral, realistically assessing liquidity requirements and deliberately prepositioning assets. She stressed that the decoupling of bank risks and state liability remained a central task.

A lively discussion developed even during Dr. Braun-Munzinger’s keynote. Dr. Judith Eigermann from the Bundesbank emphasized the importance of clear communication and the involvement of national expertise. Dr. Cornelia Holthausen from the ECB added that systemic risks needed to be analyzed and taken into account to a greater extent. Marcus Nähser (Nassauische Sparkasse), Ingo Wiedemeier (Frankfurter Sparkasse) and Sandra Michelfelder (Frankfurter Bankgesellschaft) also contributed their ideas, for example on the role of the capital markets in rescuing banks, the digitalization of resolution processes and the global challenges of coordinating resolution measures.