Demystifying Bank Resolution

United Kingdom

Whilst the events surrounding HSBC’s acquisition of Silicon Valley Bank (“SVB”) demonstrated that the UK bank resolution regime worked well, regulators and firms will now be scrutinising resolution plans, the potential impact of a bank resolution and measures which can be taken to minimise risks.  But what is bank resolution?  In this note we seek to explain this, the effect of resolution for a counterparty of a resolved firm and how firms can prepare for a resolution.

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