Resolution Planning

Resolution planning refers to the process by which financial institutions, particularly banks, prepare for potential financial distress or failure. This involves developing a strategy to ensure that the institution can be quickly and effectively restructured or dissolved without disrupting the overall financial system. It includes identifying critical functions, assessing risks, and outlining steps to maintain operations and protect customers. The goal of resolution planning is to minimize the impact on the economy and taxpayers, ensuring that any necessary resolution can be carried out smoothly and efficiently.