Single Point of Entry: Difference between revisions
imported>Doug Williamson (Standardise punctuation) |
imported>Doug Williamson (Expand to note 'top-down' resolution expressly. Source: The Treasurer, November 2015, p49.) |
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Note that some host countries for foreign subsidiaries of banks, while verbally acknowledging the SPE principle, may require a local holding company to be created to provide a means of Single Point of Entry resolution under the control of the local supervisory authority rather than it being wholly dependent on the authorities in the home jurisdiction of the bank's overall holding company. This, of course, itself rather undermines the idea of SPE. | Note that some host countries for foreign subsidiaries of banks, while verbally acknowledging the SPE principle, may require a local holding company to be created to provide a means of Single Point of Entry resolution under the control of the local supervisory authority rather than it being wholly dependent on the authorities in the home jurisdiction of the bank's overall holding company. This, of course, itself rather undermines the idea of SPE. | ||
Also known as 'top-down' resolution. | |||
Revision as of 21:45, 8 November 2015
(SPE).
Bank resolution.
Single Point of Entry (SPE) resolution of a failed or failing bank group involves working downwards from the top company (Topco) in the bank group so as to resolve the group as a whole, wherever in the group its current problems began.
Note that some host countries for foreign subsidiaries of banks, while verbally acknowledging the SPE principle, may require a local holding company to be created to provide a means of Single Point of Entry resolution under the control of the local supervisory authority rather than it being wholly dependent on the authorities in the home jurisdiction of the bank's overall holding company. This, of course, itself rather undermines the idea of SPE.
Also known as 'top-down' resolution.
