Resolution: Difference between revisions
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imported>Doug Williamson (Updated entry. Source ACT Glossary of terms) |
imported>Doug Williamson (Linked to The Treasurers Handbook - Cash in the new post-crisis world) |
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== See also == | == See also == | ||
* [[Resolution Authority]] | * [[Resolution Authority]] | ||
* [[Liquidation and Payout]] | * [[Liquidation and Payout]] | ||
* [[Insolvency]] | * [[Insolvency]] | ||
* [[Key Attributes]] | * [[Key Attributes]] | ||
* [[Bailin]] | * [[Bailin]] | ||
* [[Recovery]] | * [[Recovery]] | ||
* [[Cash in the new post-crisis world]] | |||
Revision as of 10:47, 1 December 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.
