Cross-Border Resolution of Banking Groups : Old Demons, Current Progress, Future Challenges

In the spotlight since the 2008 financial crisis, bank resolution is proposed as a credible antidote to the collapse of ‹too big to fail› financial institutions. This contribution explores the current regulatory trends in the development of bank resolution schemes and analyses the repercussions and challenges of their implementation on a cross-border basis. While trying to answer the question of whether we have put an end to the « too big to fail » problem, the author offers a comprehensive examination of :

• the issue of resolution triggers,
• the main resolution tools, with an emphasis on bail-in,
• the impact of bank resolution on shareholders’ and creditors’ rights, – the challenges of resolution planning, and
• the complexities of resolution funding.