The SRB’s role as a central resolution authority is also related to certain direct powers regarding 3/4  BIS central bankers' speeches  all institutions, including the less significant institutions. The SRB has the powers to demand information, to conduct general investigations and on-site inspections, and to impose administrative and pecuniary penalties for non-compliance with the SRM Regulation. Furthermore, the SRB develops general policies and rules to be applied so as to make consistent the analyses used for the preparation of resolution plans and the taking of resolution actions. Such documents are drafted by the so-called horizontal units and are discussed by the SRB’s working groups and/or sub-committees in which the participating Member States are represented. The BNB’s representatives will also take part in these working groups and subcommittees. The established close cooperation between the SRB and the BNB as resolution authorities for credit institutions also requires that data be exchanged and that information be provided to the SRB for performing its tasks, including information that is banking and professional secrecy. The banks in Bulgaria will have a new obligation to pay the fees, set by the SRB, needed by the SRB to cover the administration costs for performing its functions and tasks. 3. Restructuring the BNB’s activities Close cooperation is a process in which both the BNB and the credit institutions will have to adapt the model of interaction regarding the supervisory process and the bank resolution activities.

The BNB complies with the guidelines and requests issued by the ECB and pursues the necessary measures for the implementation of the ECB’s legal acts under Regulation (EU) №1024/2013, including by issuing the necessary administrative acts. In this relation, the ECB exercises control over the implementation of all SSM guidelines and standards in the BNB’s work, including with regard to the supervisory review and evaluation process and on-site supervisions. The ECB is conferred specific direct powers towards less significant institutions, in relation to the process of license issuance and revocation, approvals of acquisition and disposal of classified holdings in credit institutions, the issuance of general recommendations, guidelines and instructions, planning and carrying out of on-site inspections, including assuming at any given point in time of direct supervision over less significant institutions. For the purposes of supervision of less significant banks, a structure has been set up with the ECB’s SSM, in which the BNB participates. Within this structure, the issues of supervision over less significant institutions of the SSM participating Member States are discussed. The participation in the Single Supervisory Mechanism also includes providing the ECB with all the information needed for the performance of the ECB’s tasks, including information subject to banking and professional secrecy. The ECB collects fees for conducting its supervisory activities and this principle will accordingly apply to the banks in Bulgaria. 2. Participation in the Single Resolution Mechanism The participation in the SRM follows from the participation in the SSM.