Clifford Chance

Bank resolution regimes - Comparative analysis

25 May 2011

Regulators continue to work on developing more effective tools for resolving failed banks and other systemically important financial institutions. The aim is to put an end to the idea that any institution is "too big to fail" and so can depend on taxpayer support to avoid insolvency.

 

This briefing compares key aspects of the UK, German and US bank resolution regimes (including the orderly liquidation authority under the Dodd-Frank Act) with the proposals published by the European Commission for new EU resolution tools for banks and significant investment firms. It also compares certain aspects of the European Commission's proposed debt write-down ("bail-in") resolution tool with the requirements published by the Basel Committee on loss absorbency at the point of non-viability.

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