Arbeitspapier

When trust is not enough: Bank resolution, SPE, Ring-fencing and group support

This discussion paper investigates the differences existing between the Single Point of Entry and the Multiple Point of Entry resolution models and links this question to the issue of support that bank subsidiaries can expect from their parent companies both in resolution and in normal insolvency proceedings. Given that parental support remains imperfect in these two resolution models, the paper concludes that existing safeguards aiming at preserving the corporate interests of subsidiaries remain needed and justified. The paper then identifies potential avenues that could be further explored to reinforce the support model and thereby reduce incentives to adopt ring-fencing measures.

Language
Englisch

Bibliographic citation
Series: NBB Working Paper ; No. 403

Classification
Wirtschaft
General Financial Markets: General (includes Measurement and Data)
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Business and Securities Law
Subject
Bank resolution
SPE
Banking crisis
bail-in
bankruptcy

Event
Geistige Schöpfung
(who)
Dewatripont, Mathias
Montigny, Marie
Nguyen, Grégory
Event
Veröffentlichung
(who)
National Bank of Belgium
(where)
Brussels
(when)
2021

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Dewatripont, Mathias
  • Montigny, Marie
  • Nguyen, Grégory
  • National Bank of Belgium

Time of origin

  • 2021

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