On 21 May, representatives of 26 EU Member States (all except Sweden and the UK) signed in Brussels the intergovernmental agreement on the transfer and mutualisation of contributions in the Single Resolution Fund. The fund constitutes the crucial part of the Single Resolution Mechanism, which has been recently established by the Regulation of the European Parliament and of the Council. The process of transfer and gradual mutualisation of the fund was chosen by the Council to be governed by an intergovernmental agreement due to some legal difficulties in several Member States and in order to avoid any future problems. According to the agreement, all banks and credit institutions in the Member States will contribute to the fund according to the amount of their liabilities. Initially, the contributions will be divided into national compartments for a period of 8 years, during which they will be gradually mutualised – 40% in the first year, 20% in the second and the remainder in the following six years. The target amount of the fund is 1% of the deposits made with the contracting parties´ banks. Until the amount reaches this threshold, temporary “loans” between the national compartments will be made available in case of any problems. Also, the European Stability Mechanism will be allowed to make a contribution to the fund. Under recent predictions, in 8 years the fund should amount to €55 billion.