As the report sets out, significant progress has been made over the past decade, with Bank staff leading the way in international fora on developing the policy framework for resolution and taking steps to put policy into practice. As the IEO concludes, the Bank’s work with the industry means that firms are more resolvable now than they were during the crisis, and costs of failure would increasingly be absorbed by investors, rather than taxpayers. However, much also remains to be done if the major UK banks are to be fully resolvable by 2022.
The recommendations in this report cover three themes. The first looks to support the Bank’s work in delivering on its target to make firms fully resolvable by 2022. The second centres around the supporting infrastructure to reinforce cross-Bank working as it shifts further towards the implementation of the framework. The third levers off existing preparatory work for executing a resolution, bearing in mind it has been some time since a bank has been resolved in the United Kingdom.
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