(Difference between pages)
imported>Doug Williamson |
imported>Doug Williamson |
| Line 1: |
Line 1: |
| 1.
| | ''Regulation - UK.'' |
|
| |
|
| A technique used as part of the resolution of a failed bank under statutory authority.
| | Sets out provisions required by the UK Financial Conduct Authority (FCA) relating to the safeguarding of client assets from investment business in the hands of financial firms. |
|
| |
|
| The Resolution Authority (RA) makes an assessment of the extent of expected losses and reconstructs the bank's capital accordingly.
| |
|
| |
|
| In reconstructing the bank's capital the RA imposes losses on creditors, including preferred shareholders and depositors.
| |
|
| |
|
| The allocation of the total expected losses follows the creditor hierarchy that would apply in a liquidation, until the total expected losses are covered.
| | ==See also== |
|
| |
|
|
| | * [[Assets Under Management]] |
| The remaining (surviving) layers of debt are partially converted to equity to recapitalise viable parts of the business.
| | * [[Financial Conduct Authority]] |
| | * [[Regulation]] |
|
| |
|
| The viable parts of the business are thus enabled to continue under new ownership.
| | [[Category:Accounting,_tax_and_regulation]] |
| | | [[Category:The_business_context]] |
| | | [[Category:Compliance_and_audit]] |
| The RA is normally given significant discretion in how the reconstruction - including bailin - is applied.
| | [[Category:Financial_products_and_markets]] |
| | |
| | |
| 2.
| |
| | |
| Contractual bailin refers to a provision in the terms of certain bank debt that are to be converted automatically to equity or written off, if conditions specified in the contract obtain.
| |
| | |
| | |
| == See also ==
| |
| * [[Resolution Authority]]
| |
| * [[Multiple Point of Entry]]
| |
Latest revision as of 15:55, 24 December 2019
Regulation - UK.
Sets out provisions required by the UK Financial Conduct Authority (FCA) relating to the safeguarding of client assets from investment business in the hands of financial firms.
See also
