On 19 December, the Council adopted two implementing acts concerning the banking union´s key pillar – the Single Resolution Mechanism. Firstly, it named the first chairperson, vice-chairperson and four full-time members of the Single Resolution Board, the key decision-making body of the mechanism. The first chairperson will be Ms Elke Koenig while the first vice-chairperson will be Mr Timo Loyttyniemi. The Council also formally adopted the previously agreed implementing regulation laying down the contributions to be paid by banks to the Single Resolution Fund.

In this context, on 1 January 2015, the single rulebook for bank resolution became applicable throughout the EU. The rules were set out by the Bank Resolution and Recovery Directive. Each bank has to prepare its recovery plan in case problems arise. National authorities were given clear competences to avoid, and if necessary resolve failings of banks. The rulebook provides also which creditors will absorb the losses made by the bank in case of its failure – the so-called bail-in procedure. National resolution funds are also part of the comprehensive rules. These, though, will be replaced by the Single Resolution Fund from 2016.

Also, on 1 January 2015, Lithuania became the 19th country to adopt the euro. With this, the whole Baltic region now uses the single currency. Lithuanian national bank thus became part of the Eurosystem and its commercial banks came under the supervision of the ECB under the Single Supervisory Mechanism.

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