Article 94
Review
1.
By 31 December 2018, and every three years thereafter, the Commission shall publish a report on the application of this Regulation, with a special emphasis on monitoring the potential impact on the smooth functioning of the internal market. That report shall evaluate:
(a)
the functioning of the SRM, its cost efficiency, as well as the impact of its resolution activities on the interests of the Union as a whole and on the coherence and integrity of the internal market for financial services, including its possible impact on the structures of the national banking systems within the Union, in comparison with other banking systems, and regarding the effectiveness of cooperation and information sharing arrangements within the SRM, between the SRM and the SSM, and between the SRM, national resolution authorities, competent authorities and resolution authorities of non-participating Member States, in particular assessing whether:
(i)
there is a need that the functions allocated by this Regulation to the Board, to the Council and to the Commission, be exercised exclusively by an independent Union institution and, if so, whether any changes of the relevant provisions are necessary including at the level of primary law;
(ii)
cooperation between the SRM, the SSM, the ESRB, EBA, ESMA and EIOPA, and the other authorities which form part of the ESFS, is appropriate;
(iii)
the investment portfolio in accordance with Article 75 is made of sound and diversified assets;
(iv)
the link between sovereign debt and banking risk has been broken;
(v)
governance arrangements, including the division of tasks within the Board and the composition of the voting arrangements both in the executive and the plenary sessions of the Board and its relations with the Commission and the Council are appropriate;
(vi)
the reference point for setting the target level for the Fund is adequate and in particular, whether covered deposits or total liabilities is a more appropriate basis and if a minimum absolute amount for the Fund should be established in order to avoid volatility in the flow of financial means to the Fund and to ensure the stability and adequacy of the financing of the Fund over time;
(vii)
it is necessary to modify the target level established for the Fund and the level of contributions in order to ensure a level playing field within the Union;
(b)
the effectiveness of independence and accountability arrangements;
(c)
the interaction between the Board and EBA;
(d)
the interaction between the Board and the national resolution authorities of non-participating Member States and the effects of the SRM on those Member States, and the interaction between the Board and relevant third-country authorities as defined in Article 2(1)(90) of Directive 2014/59/EU;
(e)
the necessity of taking steps in order to harmonise insolvency proceedings for failed institutions.
2.
The report shall be submitted to the European Parliament and to the Council. The Commission shall make accompanying proposals, as appropriate.
3.
When reviewing Directive 2014/59/EU, the Commission is invited also to review this Regulation, as appropriate.