resolution authority

Resolution authority refers to the power granted to a designated agency or authority to manage and resolve a failing financial institution, such as a bank, in an orderly manner. Its goal is to prevent financial instability and protect taxpayers by ensuring that if a bank cannot continue normal operations, it is wound down or restructured without causing widespread damage to the economy. This authority allows the regulator to step in quickly, take control, and implement plans that minimize disruption, maintain financial stability, and safeguard depositors and the broader financial system.