What is Banking Recovery?

What is Banking Recovery?

In this video, Gilles introduces the concept of bank recovery and resolution. He has outlined what resolution is and what banks need to have in place.
Overview

The financial crisis of 2008 showed that there were insufficient rules to deal with failing banks. Through changes in regulation Recovery and Resolution rules have been implemented around the world through various sets of regulation. The rules provide standardised tools and powers for national authorities to deal with failing banks, with the intention of minimising the negative impact of bank failures on taxpayers, without jeopardising the financial system as a whole.

Recovery is the first stage. It is implemented whilst the bank is still a ‘going concern’. A bank must write a recovery plan showing how it intends to restore its viability in a timely manner should it find itself in a severe stress situation, and how it will continue to provide critical services to the economy.

Key learning objectives:

  • Comprehend why Recovery and Resolution regulation is required

  • Understand the Recovery stage of Recovery and Resolution

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Summary
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Expert
Gilles Renaudiere

Gilles Renaudiere

Gilles Renaudiere is a corporate adviser in BNP Paribas' Capital Products team, focusing on financial institutions and capital markets. His role is to advise banks and insurance companies on their optimal capital structure and prudential regulatory matters. He also advises them on instruments they issue such as hybrid instruments and TLAC and MREL debt. Prior to this he spent 8 years at UBS, where he worked in the capital Solutions and Debt Capital markets teams.

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