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The Bank of England’s approach to resolving failed institutions

Author

Listed:
  • Andrew Gracie

    (Bank of England)

  • Lucy Chennells

    (Bank of England)

  • Mark Menary

    (Bank of England)

Abstract

The Bank of England has an objective to protect and enhance UK financial stability, as part of which firms must be able to fail without destabilising the rest of the financial system. Resolution is the process by which the UK financial authorities can intervene to manage the failure of a firm in an orderly way. The aim is to ensure continuity of the critical economic functions and services provided to customers, and that the costs of failure are borne by shareholders and unsecured creditors rather than taxpayers.

Suggested Citation

  • Andrew Gracie & Lucy Chennells & Mark Menary, 2014. "The Bank of England’s approach to resolving failed institutions," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 409-418.
    • Handle: RePEc:boe:qbullt:0159
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    File URL: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/the-boes-approach-to-resolving-failed-institutions.pdf?la=en&hash=631CC417C51D46920DBE00C1AE836565BC9D0B2D
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    References listed on IDEAS

    as
    1. Amandeep Rehlon & Dan Nixon, 2013. "Central counterparties: what are they, why do they matter and how does the Bank supervise them?," Bank of England Quarterly Bulletin, Bank of England, vol. 53(2), pages 147-156.
    2. Marc Farag & Damian Harland & Dan Nixon, 2013. "Bank capital and liquidity," Bank of England Quarterly Bulletin, Bank of England, vol. 53(3), pages 201-215.
    3. Andrew Bailey & Sarah Breeden & Gregory Stevens, 2012. "The Prudential Regulation Authority," Bank of England Quarterly Bulletin, Bank of England, vol. 52(4), pages 354-362.
    4. Emma Carter, 2012. "Considering the continuity of payments for customers in a bank’s recovery or resolution," Bank of England Quarterly Bulletin, Bank of England, vol. 52(2), pages 147-153.
    5. Geoffrey Davies & Marc Dobler, 2011. "Bank resolution and safeguarding the creditors left behind," Bank of England Quarterly Bulletin, Bank of England, vol. 51(3), pages 213-223.
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    Cited by:

    1. Oliver Bush & Samuel Knott & Chris Peacock, 2014. "Why is the UK banking system so big and is that a problem?," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 385-395.
    2. Robin Swain & David Swallow, 2015. "The prudential regulation of insurers under Solvency II," Bank of England Quarterly Bulletin, Bank of England, vol. 55(2), pages 139-153.
    3. Kushal Balluck, 2015. "Investment banking: linkages to the real economy and the financial system," Bank of England Quarterly Bulletin, Bank of England, vol. 55(1), pages 4-22.
    4. Zijun Liu & Stephanie Quiet & Benedict Roth, 2015. "Banking sector interconnectedness: what is it, how can we measure it and why does it matter?," Bank of England Quarterly Bulletin, Bank of England, vol. 55(2), pages 130-138.
    5. Richard Button & Samual Knott & Conor Macmanus & Matthew Willison, 2015. "Desperate adventurers and men of straw: the failure of City of Glasgow Bank and its enduring impact on the UK banking system," Bank of England Quarterly Bulletin, Bank of England, vol. 55(1), pages 23-35.

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