BWC’s second Future of Finance paper examines lessons from the 2023 failures of Silicon Valley Bank and Credit Suisse for bank resolution frameworks. It argues that resolution plans should be prepared in advance, include multiple options, and be based on realistic assumptions about time, funding, and finding buyers. The paper also calls for stronger cross-border coordination, central bank liquidity tools, and risk-based planning to ensure resolution works when confidence in a bank collapses.
New Publication | Resolving Systemically Important Banks: Lessons from the 2023 Bank Failures