[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109180-en":3,"doc-seo-109180-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109180,962075006959,"Anda","https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297",8,"Research & Report","A Single [SM]all Bank Resolution Framework - Proposal for a Single Framework","A proposal outlining a single small bank resolution framework for FinSAC client countries, focusing on how to assess public interest, apply legal safeguards, and structure resolution tools. It evaluates preferred resolution strategies, including a two-step sale of business approach, and examines resolution funding, liquidity, and public support. The paper also addresses banks’ resolvability and resolution planning for small banks, highlighting gaps in loss-absorbing capacity and conversion capacity and considering the role of resolution financing mechanisms.","Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized  \nMay 2025  \n© 2025 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW  \nWashington DC 20433 Telephone: 202-473-1000  \n[Internet: www.worldbank.org](Internet: www.worldbank.org)  \nThis work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent.  \nThe World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.  \nNothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.  \nRights and Permissions  \nThe material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given.  \nAny queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [pubrights@worldbank.org](pubrights@worldbank.org).  \nCover design: Kora Reichardt  \nContents 1  \nCONTENTS  \nAbbreviations  3  \nAcknowledgements and Disclaimer  4  \nAbstract  5  \nExecutive Summary  6  \n1. BANK RESOLUTION PRACTICES IN FINSAC CLIENT COUNTRIES  12  \n1.1. State of play of resolution regimes in FinSAC client countries  12  \n1.2. The bank liquidation procedure in FinSAC client countries  14  \n2. A SINGLE [SM]ALL BANK RESOLUTION FRAMEWORK  16  \n2.1. The public interest assessment  16  \n2.1.1. The public interest assessment as a condition for BRRD resolution  16  \n2.1.2. The public interest assessment as legal safeguard under a single [sm]all bank regime  19  \n2.2. Resolution powers and tools – the case for a 2-step sale of business  22  \n2.2.1. Preferred resolution strategies for banks in FinSAC client countries  22  \n2.2.2. Proposal for a two-step SoB under a staggered resolution approach  24  \n2.3. Resolution funding, liquidity, and public support  26  \n2.3.1. Lack of loss absorbing and conversion capacity in FinSAC client countries  27  \n2.3.2. Use of DIFfor resolution and/or need for a separate resolution fund  28  \n2.3.3. Liquidity under resolution –forward looking ELA  34  \n2.3.4. Public support  35  \n2.4. Resolvability and resolution planning for sm[all] banks  35  \n3. CONCLUSION  37  \n2 Contents  \nAnnex 1. Definition of key terminology used throughout the paper  38  \nAnnex 2. Overview of Resolution Frameworks in FinSAC client and selected benchmark countries  40 Annex 3. Resolution regimes in the EU and US – Comparative overview of selected aspects  43  \nAnnex 4. Legal consideration on the Public Interest Assessment  48  \nAnnex 5. Overview of standard liquidation and resolution tools  51  \n1. Liquidation payout as a default  51  \n2. Insured deposit transfer  52  \n3. Assets and liabilities or share transfer to a private acquirer  52  \nIncrease market concentration / competitive effect / welfare effecting amount-financial stability  53  \n4. Bridge Bank  54  \n5. Open Bank Bail-In Resolution Strategies  54  \nAbbreviations 3  \nABBREVIATIONS  \nBRRD  \nCMDI  \nDGSD  \nDIF  \nEBA  \nECB  \nECHR  \nECJ  \nELA  ","cbCaip6CsINnwTE8","https://ap.wps.com/l/cbCaip6CsINnwTE8","pdf",5874402,2,1,58,"English","en",105,"# Contents\n## Abbreviations\n## Acknowledgements and Disclaimer\n## Executive Summary\n## 1. Bank Resolution Practices in FinSAC Client Countries\n## 1.1. State of play of resolution regimes in FinSAC client countries\n## 1.2. The bank liquidation procedure in FinSAC client countries\n## 2. A Single [SM]all Bank Resolution Framework\n## 2.1. The public interest assessment\n## 2.2. Resolution powers and tools – the case for a 2-step sale of business\n## 2.3. Resolution funding, liquidity, and public support\n## 2.4. Resolvability and resolution planning for sm[all] banks\n## 3. Conclusion\n## Annex 1. Definition of key terminology used throughout the paper\n## Annex 2. Overview of Resolution Frameworks in FinSAC client and selected benchmark countries\n## Annex 3. Resolution regimes in the EU and US – Comparative overview of selected aspects\n## Annex 4. Legal consideration on the Public Interest Assessment\n## Annex 5. Overview of standard liquidation and resolution tools","[{\"question\":\"What is the core purpose of the proposed single small bank resolution framework?\",\"answer\":\"It presents a single framework for handling the resolution of small banks in FinSAC client countries, centering on public interest assessment, legal safeguards, and appropriate resolution powers and tools.\"},{\"question\":\"How does the framework address liquidation and resolution tools for small banks?\",\"answer\":\"It discusses standard liquidation defaults and multiple resolution tools, and it argues for preferred strategies such as a two-step sale of business under a staggered resolution approach.\"},{\"question\":\"What issues does the framework raise about resolution funding and liquidity?\",\"answer\":\"It highlights limitations in loss-absorbing and conversion capacity in FinSAC client countries and examines how resolution financing, including potential use of DIF and liquidity support such as ELA, can be managed.\"}]","A Single [SM]all Bank Resolution Framework - 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