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BANK RESOLUTION TOOLS

BdE

Created on December 9, 2025

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Transcript

BRIDGE INSTITUTION

SALE OF BUSINESS

A bank is temporarily created to continue performing critical functions while a definitive solution is found

The bank, or part of it, is transferred to another bank that can continue its activity

Resolutiontools

ASSET SEPARATION

BAIL-IN

Losses are directly incurred by shareholders and some creditors, and the latter help recapitalise the bank

The bank’s troubled assets are separated and transferred to a firm specialised in managing them