Purchase and Assumption: Difference between revisions
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imported>Doug Williamson (Add See also references as per Glossary.) |
imported>Doug Williamson m (Spacing 20/8/13) |
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(P&A). | |||
<i>Bank resolution.</i> | <i>Bank resolution.</i> | ||
A term used in the resolution of failed banks. | A term used in the resolution of failed banks. | ||
Simple P&A involves splitting a distressed bank into ‘good’ and ‘bad’ parts. | 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 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. | ||
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Services to insured depositors are sustained. | 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. | |||
== See also == | == See also == | ||
Revision as of 15:55, 20 August 2013
(P&A).
Bank resolution.
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.
