Resolution: Difference between revisions
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imported>Doug Williamson (Link with Purchase and Assumption page.) |
imported>Doug Williamson (Link with Directive page.) |
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== See also == | == See also == | ||
* [[Board resolution]] | * [[Board resolution]] | ||
* [[Directive]] | |||
* [[Financial stability]] | * [[Financial stability]] | ||
* [[Resolution Authority]] | * [[Resolution Authority]] | ||
Revision as of 05:28, 12 July 2017
1.
Bank resolution
The special process of resolving the problem of the actual or threatened insolvency of financial firms.
The speed with which value destruction occurs in a failing financial firm means that normal corporate insolvency processes and liquidation are inappropriate for such firms.
As in normal insolvency, losses will be expected for some creditors.
Resolution is the orderly failure of a firm, under the control of the resolution authority.
Contrast with ‘recovery’ in which a financial firm facing difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.
2.
A formal decision of a body such as a board of directors, recorded in writing.
See also
- Board resolution
- Directive
- Financial stability
- Resolution Authority
- Liquidation and Payout
- Insolvency
- OLA
- Key Attributes
- Bailin
- Recovery
- RRP
- Cash in the new post-crisis world
- Purchase and Assumption
- Resolution plan
- Resolution weekend
