Jeremy Jennings-Mares, Anna T Pinedo, Oliver IrelandFrom: Bank Resolution: The European Regime
Edited By: Jens-Hinrich Binder, Dalvinder Singh
This chapter analyses the single point of entry (SPOE) approach to bank resolution. The strategy involves the application of resolution powers at the level of the top holding or parent company by a single resolution authority. This resolution authority would probably be located in the jurisdiction responsible for the global consolidated supervision of the banking group. The assets and the continuity of operations of subsidiaries are preserved, which avoids the need to commence distinct resolution proceedings at lower levels within the group. Although a resolution led by the home resolution authority may require assistance from a host authority, in terms of the application of resolution tools locally to support the top level resolution, or to bail-in intra-group debt claims, the principle is that no distinct, independent resolution proceedings should be required, as regards local subsidiaries of the group. The chapter addresses both the UK and US approach to SPOE.