Bank Resolution and Creditor Distribution: The Tension Shaping Global Banking –part II: The Cross-border Dimension

Authors

David Ramos, Carlos III University, Madrid
Javier Solana, University of Glasgow

Document Type

Article

Abstract

New bank resolution frameworks that aim to address the complex task of managing the collapse of a large financial institution stand in considerable tension with basic principles and policy objectives of insolvency law. In this two-part study, we present an analytical framework that aims at helping us understand how this tension can undermine the effectiveness of the new bank resolution frameworks. In the first part of this article, we introduced our three-layered framework and explored its first two layers: the group dimension, and the duality of crisis-prevention and crisis-management tools. In this Part II, we explore the last layer: the cross-border dimension. As in Part I, we reflect on the practical challenges that resolution authorities are likely to face when implementing the new resolution frameworks. In addition, we use the insights from our analysis to reflect on the impact that these new bank resolution frameworks will have on the governance of international financial markets and conclude that these frameworks will fundamentally change how large banks do business at the global level.

Recommended Citation

David Ramos and Javier Solana, Bank Resolution and Creditor Distribution: The Tension Shaping Global Banking –part II: The Cross-border Dimension, 28 U. MIA Bus. L. Rev. 245 (2020)
Available at: https://repository.law.miami.edu/umblr/vol28/iss2/3