Contribution to bank fund ‘to depend on size and risk’

The amount of money banks have to pay into the new bank resolution fund will be calculated according to size, and adjusted according to the risks they present under a draft scheme unveiled by the European Commission.

Known as the Single Resolution Mechanism, to be managed by a board due to be set up next year, its aim is to ensure that banks pay for themselves if they run into trouble — rather than being bailed out by the taxpayer.

It will replace the 28 national resolution funds in the Bank Recovery and Resolution Directive, and will gradually be pooled.