The Resolution Committee
The Resolution Committee is appointed by the Resolution Authority, whose composition, powers and functions are governed by provisions set out in the First Schedule to the MFSA Act and the Recovery and Resolution Regulations (RRR).
The Resolution Authority has assigned all its powers to the Resolution Committee which has all the necessary powers in order to carry out its functions. The Resolution Committee is ultimately responsible for taking resolution decisions pursuant to the MFSA Act and the RRR. The Resolution Committee also interacts and collaborates closely with the Single Resolution Board (SRB) which is responsible for resolution matters at Banking Union level as established in the Single Resolution Mechanism Regulation.
The Resolution Authority and the Resolution Committee operate independently from each other and from the supervisory arm of the MFSA to ensure that the statutory responsibilities are achieved in a transparent and credible way and be in line with the provisions of the BRRD as amended by the second BRRD.
The key objectives of the Resolution Committee are to act in such a way so as to:
1) Safeguard the resolution objectives
- Safeguarding critical functions;
- Minimise risks to financial stability;
- Protect public funds;
- Protect depositors, client funds and client assets;
2) Reduce the costs of resolution and destruction of value of an institution while also requiring the full assistance and collaboration of institutions.