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.