BoE updates resolution approach

The BoE has set out the framework it would use to resolve failing banks, building societies and dual-regulated investment firms. It has updated its “Purple Book” which explains all the key features of the regime and how the BoE would be likely to act to implement a resolution. The publication:

• highlights the end of “too big to fail” with the increased need for the major banks to show they could achieve outcomes in resolution and to publish their resolution preparations;
• explains the key strategies of bail-in, transfer or modified insolvency;
• looks at how the BoE would conduct a resolution;
• sets out the approach to providing liquidity in resolution;
• explains single point of entry bail in;
• looks at the resolution actions BoE has taken, including this years Silicon Valley Bank UK resolution;
• explains the Resolvability Assessment Framework;
• sets out its thoughts on Resolution Planning; and
• looks at international coordination.