Liquidation and Payout

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(L&P).

Bank resolution.

A term used in the resolution of failed banks.


Liquidation and Payout is designed to give:

  1. Prompt payout to insured depositors covered by the Deposit Guarantee Scheme (DGS).
  2. Distribution to creditors, sale or abandonment of the assets of the failed bank.
  3. Prompt distribution to creditors of any proceeds.


Under Liquidation and Payout, ultimately the bank will be wound up.


See also