Supervisory lessons: resolution is a ‘dirty business’

Aristóbulo de Juan offers a toolkit for resolving problem banks

Dirty dishes

Bank resolution is a difficult process. In most cases, identifying losses is a gradual process, which takes time.

Therefore, even if an institution is not illiquid, decapitalisation needs to be addressed as soon as capital is seriously eroded, because insolvency is already present in most cases. As with relying on time, depending on growth as a solution can prove a costly mistake. As a rule, underlying and hidden losses will grow faster. Even better management will find it hard to keep up.

In

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.