Purchase and Assumption: Difference between revisions
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imported>Doug Williamson (Align with Glossary.) |
imported>Doug Williamson (Add See also references as per Glossary.) |
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The bad part of the failed bank goes into administration, with the administrators selling what they can and winding down the rest. | The bad part of the failed bank goes into administration, with the administrators selling what they can and winding down the rest. | ||
== See also == | |||
* [[Bridge Bank]] | |||
* [[Deposit Guarantee Scheme]] | |||
* [[Key Attributes]] | |||
* [[Liquidation and Payout]] | |||
* [[Multiple Point of Entry]] | |||
* [[Resolution Authority]] | |||
Revision as of 11:24, 30 May 2013
Bank resolution.
(P&A).
A term used in the resolution of failed banks.
Simple P&A involves splitting a distressed bank into ‘good’ and ‘bad’ parts.
The distressed bank’s deposit book is sold to a third party together with some cash injected by the Deposit Guarantee Scheme (DGS) and possibly other good assets.
The deposit book and cash might for a while be held in a Bridge Bank controlled by the Resolution Authority (RA), pending sale to a purchaser.
Services to insured depositors are sustained.
The bad part of the failed bank goes into administration, with the administrators selling what they can and winding down the rest.
