Equivalent Annual Rate and Resolution: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
m (Spacing)
 
imported>Doug Williamson
(Update.)
 
Line 1: Line 1:
(EAR).  
<i>Bank resolution.</i>
 
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 financial firm facing difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.  


The same as Effective Annual Rate.


== See also ==
== See also ==
* [[Effective annual rate]]
* [[Resolution Authority]]
* [[Liquidation and Payout]]
* [[Insolvency]]
* [[OLA]]
* [[Key Attributes]]
* [[Bailin]]
* [[Recovery]]
* [[Cash in the new post-crisis world]]
* [[Resolution weekend]]
 
 
=== Other links ===
[http://www.bankofengland.co.uk/financialstability/Documents/resolution/apr231014.pdf| The Bank of England's approach to resolution, October 2014]

Revision as of 21:01, 4 August 2016

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 financial firm facing difficulties is returned to acceptable financial health without imposing losses on the distressed firm's creditors.


See also


Other links

The Bank of England's approach to resolution, October 2014