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Home > Financial Stability > Resolution
 

Resolution

Resolution is the process by which the authorities can intervene to manage the failure of a firm in an orderly fashion. 
 
The Bank of England’s mission is to promote the good of the people of the United Kingdom by maintaining monetary and financial stability. The Bank’s responsibilities – as resolution authority – support that mission by ensuring that, if a firm fails, the adverse effects on the provision of financial services and the wider economy are minimised. The regulatory system in the United Kingdom is not designed to ensure that no firm ever fails.
 
The Bank has published its approach to resolution in the following document:
 
The document describes the framework available to the Bank to resolve failing banks, building societies and some types of investment firm. The first part outlines the aims of resolution and describes the key features of the United Kingdom’s resolution regime. The second part sets out how the Bank expects to carry out the resolution of a failing firm in practice, using the powers available to it as the UK resolution authority. It will be updated periodically, as approaches to resolution, the legal regime and firm structures evolve.