Regulation (EU) No 806/2014 establishes a unified framework for the resolution of credit institutions and certain investment firms within the Single Resolution Mechanism (SRM). It outlines the roles of the Single Resolution Board, cooperating national resolution authorities, and financing through a Single Resolution Fund (the Fund). The regulation aims to enhance financial stability by ensuring a coherent resolution process that protects depositors and prevents public financial support from being necessary.

The SRM focuses on preserving the continuity of critical financial functions while mitigating adverse effects on market stability. Key aspects include the introduction of resolution tools such as the sale of business tool, bridge institution tool, asset separation tool, and bail-in tool. The regulation mandates that all significant resolution activities comply with established objectives and principles, ensuring fair treatment for creditors and overall integrity of the internal market.