62019TJ0732_INF
Judgment of the General Court (Seventh Chamber) of 15 November 2023 –PNB Banka and Others v SRB
(Case T-732/19) (
1
)
(Economic and monetary union – Banking union – Single resolution mechanism for credit institutions and certain investment firms (SRM) – Resolution procedure – Decision not to adopt a resolution scheme – Action for annulment – Annexes to the application – Legal interest in bringing proceedings – Locus standi – Competence of the author of the act – Right to be heard – Obligation to state reasons – Concept of whether an entity ‘is failing or is likely to fail’ – Manifest error of assessment – Proportionality – Equal treatment)
1.
Judicial proceedings – Application initiating proceedings – Formal requirements – Contested act not produced – No infringement of the defendant’s rights, or harm or inconvenience, as a result of that failure to produce – No automatic inadmissibility of the application – Admissibility
(Statute of the Court of Justice, Art. 21, second para.; Rules of Procedure of the General Court, Art. 78(1))
(see paragraphs 34-36)
2.
Actions for annulment – Natural or legal persons – Measures of direct and individual concern to them – Direct concern – Criteria – Decision of the Single Resolution Board (SRB) not to adopt a resolution scheme in respect of a credit institution – Determination of whether that decision directly affects the legal situation of the shareholders of that institution – No effect on the right of shareholders to receive dividends and to participate in the management of that credit institution – Lack of direct concern – Inadmissibility
(Art. 263, fourth para, TFEU ; European Parliament and Council Regulation No 806/2014, Art. 18(1))
(see paragraphs 40, 42, 43, 51)
3.
Actions for annulment – Natural or legal persons – Measures of direct and individual concern to them – Direct concern – Criteria – Decision of the Single Resolution Board (SRB) not to adopt a resolution scheme in respect of a credit institution – Determination of whether that decision directly affects the legal situation of that institution – Decision finding that that institution was failing or was likely to fail – Decision directly affecting that institution’s legal position – No discretion on the part of the national regulatory authority responsible for implementing the decision in its regard – Direct concern to the credit institution concerned
(Art. 263, fourth para, TFEU ; European Parliament and Council Regulation No 806/2014, Art. 18(1)(a))
(see paragraphs 44-49, 52)
4.
Actions for annulment – Natural or legal persons – Legal interest in bringing proceedings – Conditions – Decision of the Single Resolution Board (SRB) whether or not to adopt a resolution scheme – Assessment of whether the entity concerned was failing or was likely to fail – Prerequisite for triggering the resolution procedure – Legitimate interest of the entity concerned in not being subject to an assessment concluding that it is failing or is likely to fail – Included
(Art. 263, fourth para, TFEU ; European Parliament and Council Regulation No 806/2014, Art. 18)
(see paragraphs 54, 57-60)
5.
Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Powers of the European Central Bank – Direct prudential supervision of a less significant credit institution – Conditions – Adoption of a decision classifying that institution as significant
(Council Regulation No 1024/2013, Art. 6(5)(b); European Central Bank Regulation No 468/2014, Art. 39(5))
(see paragraph 73)
6.
Economic and monetary policy – Economic policy – Single resolution mechanism for credit institutions and certain investment firms – Single Resolution Board (SRB) – Powers – Decision whether or not to adopt a resolution scheme – Obligation to adopt such a decision following the assessment by the European Central Bank (ECB) that the entity concerned is failing or is likely to fail
(European Parliament and Council Regulation No 806/2014, Art. 18(1); European Parliament and Council Directive 2014/59, Art. 82(2))
(see paragraphs 82-84)
7.
Economic and monetary policy – Economic policy – Single resolution mechanism for credit institutions and certain investment firms – Decision not to adopt a resolution scheme – Conditions – Assessment of whether the entity concerned is failing or is likely to fail – Right of the Single Resolution Board (SRB) to have recourse to elements other than the assessment of the European Central Bank (ECB) in order to examine that failure
(European Parliament and Council Regulation No 806/2014, Art. 18(1)(a)
(see paragraphs 103, 104, 113, 114, 121)
8.
Economic and monetary policy – Economic policy – Single resolution mechanism for credit institutions and certain investment firms – Adoption of a resolution scheme – Conditions – Requirement for speed – Assessment of whether the entity concerned is failing or is likely to fail – Credit institution concerned by that assessment heard by the European Central Bank (ECB), but not by the Single Resolution Board (SRB) – Right to good administration – Infringement of the right to be heard – None
(Charter of Fundamental Rights of the European Union, Art. 41(2)(a); European Parliament and Council Regulation No 806/2014, Art. 18(1)(a))
(see paragraphs 153-163)
9.
Economic and monetary policy – Economic policy – Single resolution mechanism for credit institutions and certain investment firms – Adoption of a resolution scheme – Decision relating to that scheme adopted before the expiry of the last time limit laid down in the early intervention decision – Absence of precise, unconditional and consistent assurances from the Single Resolution Board (SRB) and the European Central Bank (ECB) – Breach of the principle of the protection of legitimate expectations – None
(European Parliament and Council Regulation No 806/2014)
(see paragraphs 178-180, 182, 183)
Operative part
The Court:
1.
Dismisses the action;
2.
Orders PNB Banka AS and the other applicants whose names appear in the annex to bear their own costs and to pay those incurred by the Single Resolution Board (SRB);
3.
Orders the Republic of Latvia and the European Central Bank (ECB) to bear their own costs.
(
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)	OJ C 27, 27.1.2020.