Ruth Smith reflects on the Bank’s resolvability assessments of banks and building societies, and discusses how the Bank engages with firms at different stages on the journey to resolvability. She emphasises the importance of realistic testing and ongoing maintenance of resolvability capabilities, so they are ready for use if needed.
Speech
Good afternoon. It’s a pleasure to have the opportunity to speak to you today. Thank you to UK Finance for hosting us. Resolvability is a journey that the Bank and firms are on together, and engagement with industry has been essential to the progress we’ve made so far. Resolution matters because, as we have been reminded in recent years, when a financial institution fails, resolution enables the ongoing provision of critical financial services, protects customer deposits and prevents disruption to the wider economy. Maintaining a credible, effective and responsive resolution regime is at the heart of financial stability in testing times – supporting a resilient financial sector, which in turn enables households and firms to thrive. In January, my colleague Dave Ramsden spoke about this need for responsiveness and evolution in the Bank’s approach to resolution, so the regime’s outcomes are met in an ever-changing landscape.
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