Resolutions

A bank resolution occurs when authorities determine that a failing bank cannot go through normal insolvency proceedings without harming public interest and causing financial instability. Meanwhile, any part of the bank that cannot be made viable again goes through normal insolvency proceedings. A bank resolution occurs when authorities determine that a failing bank cannot go through normal insolvency proceedings without harming public interest and causing financial instability. To manage the bank's failure in an orderly manner, authorities use resolution tools that ensure continuity of the bank's critical functionsmaintain financial stabilityrestore the viability of parts or all of the bank. Meanwhile, any part of the bank that cannot be made viable again goes through normal insolvency proceedings. After the recent financial crisis, the EU adopted a number of measures to harmonise and improve the tools for dealing with bank crises in its member countries.