BoE has written to banks on resolvability assessment framework preparations. The framework set out what banks need to do for the BoE to consider them “resolvable”. Submissions are due in October, and BoE is at pains to ensure banks understand what the resolution process looks like and what actions they should take to ensure resolvability remains a focus in BAU. It explains a key principle of the RAF is that firms are responsible for their own resolvability and, as a result, by January 2022 need to have achieved the 3 resolvability outcomes of:
- having adequate financial resources in the context of resolution
- being able to continue to do business through resolution and restructuring and
- being able to coordinate and communicate effectively within the firm and with the authorities to achieve an orderly outcome.