Resolvability assessment and disclosures

Resolvability Assessment Framework

The Resolvability Assessment Framework (RAF) makes firms responsible for their own preparations for resolution. Major UK firms need to disclose a summary of their preparations for resolution, with the Bank making its own public statement on these firms’ preparations on a periodic basis. This provides transparency to investors and the public on these firms’ resolvability. 

The Bank of England and PRA published the final RAF policy in July 2019, after consultation. The policy was updated in 2021. 

Resolvability assessment of the major UK banks

The Bank's public statement explains how we undertook the assessment and summarises thematic findings and the assessment for each of the firm’s ability to achieve the three resolvability outcomes, as set out in the RAF Statement of Policy. Firms have also published summaries of their own preparations for resolvability. The PRA will communicate the expected reporting and disclosure dates for future assessments in advance.

For further information, visit our related policy documents, firm communications and guidance webpage.

Previous resolvability assessment summaries

FAQs

What does it mean to be 'resolvable'?

A firm needs to have arrangements and plans in place so we can carry out a resolution if it fails. We think about resolvability in terms of whether a firm:

• has enough financial assets set aside to support a resolution, ie to cover the losses without collapsing completely and rebuild its finances – and continue to pay its financial obligations (eg debts, taxes and wages)
• can continue doing business during (and after) resolution
• can co-ordinate and communicate effectively within itself, with the authorities and with the market 

We have published policies and rules in relation to barriers to resolvability.

Each year we assess the barriers to carrying out the strategy and meeting our statutory objectives for each firm. If necessary, we can make a firm remove these barriers to make them more resolvable. 

For cross-border banks, we work closely with authorities in other jurisdictions to ensure a co-ordinated and co-operative approach. This includes co-ordinating on developing policies relating to resolution.

When the firm is UK-based, we are the ‘home’ resolution authority and responsible for ensuring the failure of the whole banking group can occur in an orderly way.

For a foreign firm that operates in the UK, we are a ‘host’ resolution authority, and our role is to support the firm’s home authority in preparing for and carrying out a resolution.