Mark to market basis and Resolution: Difference between pages

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imported>Doug Williamson
(Add link to Marked-to-market reset)
 
imported>John Grout
m (To activate link to "recovery")
 
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1.  
<i>Bank resolution.</i>


(MTM).
The special process of resolving the problem of the actual or threatened insolvency of financial firms.  


In financial accounting, the recognition of assets and liabilities at their current market values, as at the end of the financial accounting period.
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.


2.


A basis of taxation which follows the mark to market basis of financial accounting.
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.  




3.
== See also ==
 
* [[Resolution Authority]]
''UK Tax''.
 
A method of allocating loan-related payments to the period in which they become due and payable and brings the value of loan relationships into account at fair value at the end of each period.


* [[Liquidation and Payout]]


== See also ==
* [[Insolvency]]
* [[Accruals basis]]
* [[Market value]]
* [[Marked-to-market reset]]


[[Category:Accounting_and_Reporting]]
* [[Key Attributes]]
[[Category:Taxation]]

Revision as of 10:58, 24 March 2014

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.


See also