Bank Restructuring and Resolution - Operational Aspects

Source details

Target audience:
- Mid-level and senior officials working primarily in resolution authorities, or in central banks, regulatory and supervisory agencies, ministries of finance, deposit insurance functions with paybox-plus mandates, and other institutions involved in bank resolution, financial safety-net arrangements, and financial crisis management.
- Policymakers and practitioners responsible for designing, implementing, or overseeing bank restructuring and resolution frameworks and broader financial sector crisis-response strategies.
Qualifications:
- Participants are expected to have advanced knowledge and experience in bank restructuring and resolution—either policy issues or operational experience.
- Previous participation in the BIS-IMF Bank Resolution Online Course (BROC) and the IMF's Bank Restructuring and Resolution Course is encouraged, as the foundational knowledge acquired through these courses is considered essential for active and effective participation in this advanced program.

Purpose:
- Provide a comprehensive overview of the operational aspects of restructuring and resolving weak and failing banks.
- Draw on international standards and good practices, including the Financial Stability Board's Key Attributes of Effective Resolution Regimes and the Basel Committee on Banking Supervision's guidance on the identification and management of weak banks.
- Incorporate lessons from the IMF's extensive experience in addressing banking sector distress.
Approach:
- Practical guidance on implementing key elements of effective resolution frameworks and addressing banking sector distress.
- Complemented by case studies of bank failures illustrating practical challenges and lessons learned in the design and execution of bank restructuring and resolution measures.

Operational preparedness through resolution planning and resolvability assessments.
Effective implementation of resolution tools, including:
- Transfer powers
- Bridge banks
- Bail-in
Valuation of bank assets in resolution.
Crisis communication.
Problem bank diagnostics and restructuring strategies.
Policy considerations and instruments for:
- Liquidity support
- Public recapitalization
- Nonperforming loan resolution

Apply approaches to resolution planning and resolvability assessments.
Assess and operationalize key resolution powers, including transfer powers, bridge bank arrangements, and bail-in execution.
Understand the role of valuation in resolution and the importance of crisis communication.
Design problem bank diagnostics, liquidity support measures, and public recapitalization options.
Apply key principles underpinning system-wide bank restructuring and resolution strategies.