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Part II Bank Resolution, 6 Banks in Distress

Rodrigo Olivares-Caminal, Randall D. Guynn, Alan W. Kornberg, Sarah Paterson, Dalvinder Singh

From: Debt Restructuring (3rd Edition)

Rodrigo Olivares-Caminal, Alan Kornberg, Sarah Paterson, Dalvinder Singh, Eric McLaughlin

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 04 March 2024

Obligations to advise on transactions — Deposit insurance schemes — Recovery and Resolution Plan (RRP) — Special Resolution Regime (SSR)

Chapter 6 explains the main provisions of the UK’s Banking Act 2009. Part 1 of the Banking Act gives the authorities the tools to deal with banking institutions in financial difficulties and replaces the temporary special provisions regime that was provided by the Banking (Special Provisions) Act 2008 (BSPA) with a permanent Special Resolution Regime (SRR); Part 2 introduces the Bank Insolvency Procedure (BIP), which provides for the winding up of a failed or failing bank; and Part 3 introduces the Bank Administration Procedure (BAP) for use where part of a failing bank’s business has been transferred, by means of the SRR, to a private bank or a bridge bank. The transposition of the Bank Recovery and Resolution Directive (BRRD) has extended the resolution regime to investment banks and financial groups. The chapter also explains objectives to safeguard depositors and client assets and money. The chapter also explains the resolution techniques to assist the resolution process. The chapter also looks at the UK’s relationship and responsibilities with the European Union in resolution post Brexit.

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