Under the provisions of the Bill, the Central Bank will be substantially in charge of the entire operation. It will, in the first instance, make the decision to intervene in the operation of a particular credit institution. It will have a toolkit for repairing an ailing institution or for transferring the assets of a failing or failed bank to a sustainable bank and closing down the failed institution. A credit institutions resolution fund will be built up by the banking sector for the eventuality of a rainy day in the life of a credit institution. A bridge bank may be established and capitalised from the resolution fund. The assets and liabilities of the impaired credit institution may be transferred to the fund with a view to continuing to transact business pending the ultimate transfer of its assets and liabilities to a sustainable bank or formulation of recovery or resolution plans. Special managers, special management orders and other resolution tools contained in the Bill will facilitate the management of the impaired institution to recovery or winding down the institution with a view to liquidation.

See this item in context