Resolution: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Align with Glossary.)
(No difference)

Revision as of 10:07, 29 May 2013

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