Resolution Framework

The Resolution Framework refers to a structured approach used by financial institutions and regulators to manage and resolve failing banks or financial entities in a way that minimizes economic disruption. It outlines procedures for assessing the situation, deciding on the best course of action, and ensuring that critical services continue operating. The goal is to protect depositors and maintain financial stability while preventing the need for taxpayer bailouts. By having clear guidelines, the framework ensures that stakeholders understand their roles and responsibilities during a financial crisis, facilitating a more orderly and predictable resolution process.