Resolution is responsible for drafting resolution plans for banks and certain investment services firms, advise the Resolution Committee on whether an institution should go into liquidation or resolution and the application of resolution tools when necessary. Resolution interacts on an on-going basis with European institutions and local Authorities.
In order to retain its operational independence from the supervisory function, the Act contemplates the creation of a Resolution Committee and its underlying structures. The Resolution Committee shall have all the powers assigned to it by the Resolution Authority under the MFSA Act. The Resolution functions will be carried out as contemplated by the Act and as provided for by the Resolution Committee. Furthermore these structures will also have to administer the requirements emanating from the Bank Recovery and Resolution Directive (BRRD), Single Resolution Mechanism Regulation (SRMR), the Recovery and Resolution Regulations (RRR) and the Intergovernmental Agreement (IGA) on the transfer and mutualisation of contributions to the Single Resolution Fund.