The SRM has the mandate to ensure an orderly resolution of failing banks, preserving financial stability and protecting the taxpayer, thereby contributing to the integration of the Banking Union, to the prosperity of the EU and to the economic and social welfare of EU citizens. 

The SRM is composed of the SRB and the National Resolution Authorities (NRAs), together with the European Commission and the Council of the European Union. The SRB is entrusted with centralised resolution powers and is accountable for the effective and consistent functioning of the SRM, contributing to the efficient functioning of the EU. 

The SRB and the NRAs collaborate closely and have a division of responsibilities to work proactively on crisis readiness, resolution planning, and enhancing resolvability of large and smaller banks and cross-sectoral financial groups. 

Moreover, the industry-funded Single Resolution Fund (SRF), managed by the SRB, can be used to ensure the efficient application of resolutions tools. In order to achieve its goals, the SRM works closely with the Single Supervisory Mechanism (SSM), and other European bodies.

 In addition, the SRM cooperates with other sectoral authorities in charge of resolution, with the national authorities of Member States outside the Banking Union and of third countries, as well as with the industry.