UK Bank Recovery and Resolution Order

The UK Bank Recovery and Resolution Order sets out rules and procedures for managing a bank in financial trouble. Its goal is to protect the stability of the financial system, safeguard depositors, and minimize taxpayer costs. If a bank faces severe difficulties, authorities can take steps such as restructuring, selling parts of the bank, or, in extreme cases, closing it in an orderly manner. The order ensures these actions are conducted transparently, fairly, and with a focus on restoring the bank’s stability or efficiently winding it down to reduce risk to the economy.