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Banking Resolution: Expansion of the Resolution Toolkit and the Changing Role of Deposit Insurers

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  • Ryan Defina

    (International Association of Deposit Insurers)

Abstract

In this Policy Brief, we provide quantitative evidence demonstrating that the resolution toolkit has expanded considerably since the 2008 Global Financial Crisis (GFC). Purchase and assumption transactions, bridge bank facilitation and bail-in mechanisms have all become more available for bank resolution purposes. The use of such resolution tools is increasingly subject to least cost rules and to systemic failure considerations. These resolution tools may be available to different authorities, such as deposit insurers or resolution authorities, depending on the jurisdiction in question. Two of the three statistical models applied point to a significant increase in resolution powers for deposit insurers.

Suggested Citation

  • Ryan Defina, 2021. "Banking Resolution: Expansion of the Resolution Toolkit and the Changing Role of Deposit Insurers," IADI Policy Briefs 3, International Association of Deposit Insurers.
    • Handle: RePEc:awl:polbri:3
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    References listed on IDEAS

    as
    1. Mrs. Oana M Croitoru & Mr. Marc C Dobler & Johan Molin, 2018. "Resolution Funding: Who Pays When Financial Institutions Fail?," IMF Technical Notes and Manuals 2018/001, International Monetary Fund.
    2. Asli Demirguc-Kunt & Edward J. Kane, 2002. "Deposit Insurance Around the Globe: Where Does It Work?," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 175-195, Spring.
    3. Defina, Ryan, 2021. "The Geographic Dynamics of Deposit Insurance," MPRA Paper 110557, University Library of Munich, Germany.
    4. International Association of Deposit Insurers, 2014. "IADI Core Principles for Effective Deposit Insurance Systems," IADI Standards 14-11, International Association of Deposit Insurers.
    5. Oana M Croitoru & Marc C Dobler & Johan Molin, 2018. "Resolution Funding; Who Pays When Financial Institutions Fail?," IMF Technical Notes and Manuals 2018/01, International Monetary Fund.
    6. Hsiao,Cheng, 2015. "Analysis of Panel Data," Cambridge Books, Cambridge University Press, number 9781107657632, November.
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    Cited by:

    1. McNamara, Christian & Mott, Carey & Gupta, Salil & Feldberg, Greg & Metrick, Andrew, 2024. "Survey of Resolution and Restructuring in Europe: Pre- and Post-BRRD," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 6(1), pages 1-34, March.
    2. Bert Van Roosebeke & Ryan Defina, 2022. "Deposit Insurance in 2022: Global Trends and Key Emerging Issues," IADI Research Papers 22-02, International Association of Deposit Insurers.
    3. Bert Van Roosebeke & Ryan Defina, 2023. "Deposit Insurance in 2023: Global Trends and Key Issues," IADI Research Papers 23-02, International Association of Deposit Insurers.
    4. Bert Van Roosebeke & Ryan Defina, 2021. "Five Emerging Issues in Deposit Insurance," IADI Policy Briefs 4, International Association of Deposit Insurers.

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    More about this item

    Keywords

    deposit insurance; bank resolution;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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