Announcements

    Drinks

      The Wide Angle – Bank resolution: living wills should come with marriage contracts
      THURSDAY, 25/05/2023 - Scope SE & Co. KGaA
      Download PDF

      The Wide Angle – Bank resolution: living wills should come with marriage contracts

      With yet another reassuring set of results behind them, Europe’s large banks look remote from resolution so now is a good time to reassess whether the existing resolution framework is still capable of delivering what it is expected of it.

      Recent events have demonstrated that a bank can fail not just because of capital depletion due to a pile-up of bad debt but also because of a run on deposits while prudential metrics remain adequate.

      Sam Theodore argues that in the new world we inhabit, the end-game of bank resolution should be a takeover of a stressed bank by a financially healthy peer. Pragmatically, resolution might also entail elements of partial and temporary State support if the political will is there. This runs counter to the zero-bailout credo embraced after the GFC but it may be a necessary compromise and better than a full taxpayer bailout.

      Read the latest The Wide Angle here.

      Related news

      Show all
      French banks: uncertain policy agenda casts shadow over drive to improve profitability

      24/6/2024 Research

      French banks: uncertain policy agenda casts shadow over drive ...

      Scope assigns AAA long-term rating to KfW's first blockchain-based digital bond

      21/6/2024 Rating announcement

      Scope assigns AAA long-term rating to KfW's first ...

      Scope affirms the A+/Stable issuer ratings on Crédit Foncier and Compagnie de Financement Foncier

      20/6/2024 Rating announcement

      Scope affirms the A+/Stable issuer ratings on Crédit Foncier ...

      Global economic update: soft landing reinforces prospect of higher-for-longer interest rates

      19/6/2024 Research

      Global economic update: soft landing reinforces prospect of ...

      Scope affirms and publishes Danske Bank's A+ issuer rating with Stable Outlook

      18/6/2024 Rating announcement

      Scope affirms and publishes Danske Bank's A+ issuer rating ...

      Scope assigns a first-time public issuer rating of B- to Georgia-based Silk Bank. Outlook is Stable

      18/6/2024 Rating announcement

      Scope assigns a first-time public issuer rating of B- to ...