IDEAS home Printed from https://ideas.repec.org/a/boe/qbullt/0159.html

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
    as

    Download full text from publisher

    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
    File Function: Full text
    Download Restriction: no
    ---><---

    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paul Tucker & Simon Hall & Aashish Pattani, 2013. "Macroprudential policy at the Bank of England," Bank of England Quarterly Bulletin, Bank of England, vol. 53(3), pages 192-200.
    2. 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.
    3. Rashmi Harimohan & Benjamin Nelson, 2014. "How might macroprudential capital policy affect credit conditions?," Bank of England Quarterly Bulletin, Bank of England, vol. 54(3), pages 287-303.
    4. Lucy Chennells & Venetia Wingfield, 2015. "Bank failure and bail-in: an introduction," Bank of England Quarterly Bulletin, Bank of England, vol. 55(3), pages 228-241.
    5. Alice Alphandary, 2014. "Risk managing loan collateral at the Bank of England," Bank of England Quarterly Bulletin, Bank of England, vol. 54(2), pages 190-201.
    6. Emily Beau & John Hill & Tanveer Hussain & Dan Nixon, 2014. "Bank funding costs: what are they, what determines them and why do they matter?," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 370-384.
    7. 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.
    8. Tamarah Shakir & Matthew Tong, 2014. "The interaction of the FPC and the MPC," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 396-408.
    9. Oliver Burrows & Fergus Cumming, 2015. "Mapping the UK financial system," Bank of England Quarterly Bulletin, Bank of England, vol. 55(2), pages 114-129.
    10. Nick Davey & Daniel Gray, 2014. "How has the Liquidity Saving Mechanism reduced banks’ intraday liquidity costs in CHAPS?," Bank of England Quarterly Bulletin, Bank of England, vol. 54(2), pages 180-189.
    11. Piotr Łasak & Alicja Szyszko & Patryk Pagacz, 2019. "The interconnectedness between traditional banks, shadow banking and non-performing loans in the Chinese economy," Bank i Kredyt, Narodowy Bank Polski, vol. 50(4), pages 347-374.
    12. Clemens Bonner & Iman Lelyveld & Robert Zymek, 2015. "Banks’ Liquidity Buffers and the Role of Liquidity Regulation," Journal of Financial Services Research, Springer;Western Finance Association, vol. 48(3), pages 215-234, December.
    13. Christian Julliard & Gabor Pinter & Karamfil Todorov & Jean-Charles Wijnandts & Kathy Yuan, 2022. "What drives repo haircuts? Evidence from the UK market," BIS Working Papers 1027, Bank for International Settlements.
    14. Weronika Rec, 2019. "Loss absorption capacity of central counterparties. Evidence from EU-authorised CCPs – part I," Bank i Kredyt, Narodowy Bank Polski, vol. 50(4), pages 329-346.
    15. Ashwin Clarke & Paul Ryan, 2014. "Non-dealer Clearing of Over-the-counter Derivatives," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 77-88, March.
    16. Jin-Wook Chang, 2019. "Collateralized Debt Networks with Lender Default," Finance and Economics Discussion Series 2019-083, Board of Governors of the Federal Reserve System (U.S.).
    17. Matthew Manning, 2016. "Markets and operations: 2016 Q3," Bank of England Quarterly Bulletin, Bank of England, vol. 56(3), pages 146-154.
    18. Heidorn, Thomas & Buschmann, Christian, 2014. "The liquidity reserve funding and management strategies," Frankfurt School - Working Paper Series 210, Frankfurt School of Finance and Management.
    19. Matej Tomec & Timotej Jagric, 2017. "Does the Amount and Time of Recapitalization Affect the Profitability of Commercial Banks?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 67(4), pages 318-341, August.
    20. Mandas, Marco & Goodell, John W., 2025. "The impact of capital-based macroprudential policy on banks’ balance sheet composition," Economics Letters, Elsevier, vol. 253(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boe:qbullt:0159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Publications Group (email available below). General contact details of provider: https://edirc.repec.org/data/boegvuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.