Compendium on Resolution Strategies: a multiple-point-of-entry view

Summary

Achieving an effective resolution regime to resolve banks quickly, avoiding disturbances to the financial system, minimizing the use of public funds –thus protecting taxpayers–, and continuing the critical financial services that they provide is one of the main goals of authorities in the current regulatory reform. Authorities are developing a new resolution framework that set out the responsibilities and powers to enable them to resolve efficiently cross-border banks in trouble. In this sense, the FSB outlines two polar resolution approaches for resolving global banks: the Single Point of Entry (SPE) and Multiple Point of Entry (MPE) resolution strategies. The purpose of this compendium is to describe the main features of the Multiple Point of Entry resolution scheme

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