Resolution: Difference between revisions
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<i>Bank resolution.</i> | <i>Bank resolution.</i> | ||
The special process of resolving the problem of the actual or threatened insolvency of financial firms. | 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. | 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. | |||
Contrast with ‘recovery’ in which a firm facing financial difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors. | Contrast with ‘recovery’ in which a firm facing financial difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors. | ||
Revision as of 10:48, 30 May 2013
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.
Contrast with ‘recovery’ in which a firm facing financial difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.
