bank resolution

Bank resolution is the process used when a bank faces significant financial problems to ensure it continues operating without causing widespread financial instability. Instead of closing the bank abruptly, authorities may intervene to restructure or transfer its assets and liabilities, protect insured deposits, and maintain essential services. The goal is to manage the bank's failure in an organized way, minimizing negative impacts on depositors, creditors, and the economy, while ensuring the bank's critical functions continue smoothly.