Proposal for a Single Framework for [sm]All Bank Resolution in FinSAC Client Countries

Overview & Synopsis

This Policy Note advocates for the introduction of a single resolution framework applicable to failing banks of all sizes in FinSAC client countries. As most FinSAC client countries already have, or are in the process of developing, a European Union (EU) aligned bank resolution framework, the starting point for the analysis is the EU Bank Recovery and Resolution Directive (BRRD). While the single regime and recommendations proposed in this Note are in principle generic, they are tailored to the specificities of financial markets in FinSAC client countries, characterized by small and largely deposit-funded banking systems.