Bank Resolution Key Issues
We support the overall aim of the bank recovery and resolution framework which is to prevent bank failures becoming a systemic crisis affecting the rest of the financial system and/or the rest of the economy. It focusses on strengthening national resolution systems in member states by providing tools of “prevention”, “early intervention” and “recovery”.
Preventative measures must be set in such a way that when banks fail minimal action must be taken to avoid systemic problems.
Resolution tools can, to some extent, be defined in advance of crisis. These tools should allow authorities to manage bank failure, minimising the risk of systemic problems and the cost to taxpayers of doing so.
The European context in particular raises question of governance around such issues: to reconcile national and supra-national responsibilities and powers and in doing so to be democratically accountable.
- 7 June 2017 Policy Brief “One step forward, two steps back”
- 25 April 2017 Public hearing at ECON on the banking legislation package
- 24 May 2016 Annual Report 2015