Bank Resolution and Crisis Preparedness in Unprecedented Times
Published: March 2021
This article looks into the challenges ahead for deposit insurers and underscores the urgency of testing contingency planning and crisis management frameworks at national and system-wide levels, and the importance of communication, cooperation and coordination at home and abroad. Financial safety-net authorities should put the necessary crisis management frameworks in place to maximise the benefits of the international standards developed in response to the global financial crisis. Deposit insurers and resolution authorities should plan for dealing with an orderly resolution of failing banks before the pandemic measures are lifted. Deposit insurers and other safety-net participants need to strengthen their supervisory and crisis management frameworks and address any weaknesses identified. Developing a communications strategy should be an essential part of crisis management frameworks. Cooperation and coordination at home and abroad remains the key issue to be addressed for many jurisdictions.