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Financial Stability Paper No 5: The UK Special Resolution Regime for Failing Banks in an International Context

Author

Listed:
  • Brierley, Peter

    (Bank of England)

Abstract

This paper seeks to place in an international context the UK Special Resolution Regime (SRR) for failing banks,(1) which came into effect in February 2009 with the adoption of the Banking Act. The SRR’s key purpose is to enable an orderly resolution of a failing UK bank to be carried out in a manner preserving the public interest, particularly by maintaining financial stability, preserving confidence in the banking sector, and protecting both depositors and the taxpayer. The Northern Rock crisis in 2007 demonstrated clearly that the UK authorities lacked the powers necessary to achieve such a purpose at that time.

Suggested Citation

  • Brierley, Peter, 2009. "Financial Stability Paper No 5: The UK Special Resolution Regime for Failing Banks in an International Context," Bank of England Financial Stability Papers 5, Bank of England.
    • Handle: RePEc:boe:finsta:0005
    Note: http://www.bankofengland.co.uk/financialstability/Pages/fpc/fspapers/fs_paper05.aspx
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    References listed on IDEAS

    as
    1. Wall, Larry D. & Eisenbeis, Robert A. & Frame, W. Scott, 2005. "Resolving large financial intermediaries: Banks versus housing enterprises," Journal of Financial Stability, Elsevier, vol. 1(3), pages 386-425, April.
    2. Robert R. Bliss, 2003. "Bankruptcy law and large complex financial organizations: a primer," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 27(Q I), pages 48-58.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Herring, Richard J., 2010. "Wind-Down Plans As an Alternative to Bailouts: The Cross-Border Challenges," Working Papers 10-08, University of Pennsylvania, Wharton School, Weiss Center.
    2. Christopher J. Green, 2011. "‘The Day the Music Died’: The Financial Tsunami of 2007–09," Chapters, in: Christopher J. Green & Eric J. Pentecost & Tom Weyman-Jones (ed.), The Financial Crisis and the Regulation of Finance, chapter 2, Edward Elgar Publishing.
    3. Annemarie van der Zwet, 2011. "Crisis Management Tools in the EU: What Do We Really Need?," DNB Occasional Studies 902, Netherlands Central Bank, Research Department.
    4. David Liebeg & Michaela Posch, 2011. "Macroprudential Regulation and Supervision: From the Identification of Systemic Risks to Policy Measures," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 21, pages 62-78.
    5. Maria J. Nieto & Gillian G. Garcia, 2012. "The insufficiency of traditional safety nets: what bank resolution fund for Europe?," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 20(2), pages 116-146, May.
    6. Chennells, Lucy & Wingfield, Venetia, 2015. "Bank failure and bail-in: an introduction," Bank of England Quarterly Bulletin, Bank of England, vol. 55(3), pages 228-241.
    7. Siegert, Casper & Willison, Matthew, 2015. "Financial Stability Paper 32: Estimating the extent of the ‘too big to fail’ problem – a review of existing approaches," Bank of England Financial Stability Papers 32, Bank of England.
    8. A. Michael Andrews, 2014. "Effective resolution regimes for financial institutions in ASEAN+3," Chapters, in: Iwan J. Azis & Hyun S. Shin (ed.), Global Shock, Risks, and Asian Financial Reform, chapter 12, pages 464-509, Edward Elgar Publishing.
    9. David Mayes, 2011. "The future of financial markets: financial crisis avoidance," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 38(1), pages 77-101, February.
    10. Davies, Geoffrey & Dobler, Marc, 2011. "Bank resolution and safeguarding the creditors left behind," Bank of England Quarterly Bulletin, Bank of England, vol. 51(3), pages 213-223.
    11. Colm McCarthy, 2009. "Fiscal adjustment and re-balancing the Irish economy," Open Access publications 10197/1673, School of Economics, University College Dublin.
    12. Attinger, Barbara Jeanne, 2011. "Crisis management and bank resolution: Quo vadis, Europe?," Legal Working Paper Series 13, European Central Bank.
    13. Alessandro Giustiniani & John Thornton, 2011. "Post‐crisis financial reform: where do we stand?," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 19(4), pages 323-336, November.
    14. Phoebe White & Tanju Yorulmazer, 2014. "Bank resolution concepts, trade-offs, and changes in practices," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 153-173.

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    More about this item

    Keywords

    Resolution; Banking Act;

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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