Liquidation and Payout
From ACT Wiki
A term used in the resolution of failed banks.
Liquidation and Payout is designed to give:
- Prompt payout to insured depositors covered by the Deposit Guarantee Scheme (DGS).
- Distribution to creditors, sale or abandonment of the assets of the failed bank.
- Prompt distribution to creditors of any proceeds.
Under Liquidation and Payout, ultimately the bank will be wound up.