Euro and Resolution: Difference between pages

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{{lowercase}}
<i>Bank resolution.</i>
1.


A prefix meaning that currency is held in a different jurisdiction from its country of origin.  
The special process of resolving the problem of the actual or threatened insolvency of financial firms.  


For example eurodollar or euroyen or, more generally, eurocurrencies.
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.


Established by the 1992 Treaty on European Union (TEU, better known as the Maastricht treaty) the euro is the official currency of the European Union (EU).
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 euro is used by 19 EU member states, known collectively as the 'euro zone', the other EU members having their own currencies.


 
== See also ==
Note that the currency takes lower case except where a capital is grammatically or stylistically required, for example, at the start of a sentence.
* [[Resolution Authority]]
 
* [[Liquidation and Payout]]
The ISO (three letter) currency code for the euro is EUR.
* [[Insolvency]]
* [[OLA]]
* [[Key Attributes]]
* [[Bailin]]
* [[Recovery]]
* [[Cash in the new post-crisis world]]
* [[Resolution weekend]]




== See also ==
=== Other links ===
* [[Eurobond]]
[http://www.bankofengland.co.uk/financialstability/Documents/resolution/apr231014.pdf| The Bank of England's approach to resolution, October 2014]
* [[European Union]]
* [[Offshore]]
* [[euro zone]]

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

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