resolution funding

Resolution funding refers to financial support provided to ensure the orderly restructuring or closure of failing financial institutions, such as banks. When a bank encounters severe difficulties, resolution funding helps stabilize the situation and protect depositors and the financial system. This funding can come from a combination of government resources, industry levies, or special resolution funds. The goal is to manage the institution's exit from the market or its recovery in a way that minimizes disruption, maintains confidence in the financial system, and limits the impact on taxpayers.