The announcement of further large-scale asset purchases by the ECB and the Bank of Japan precipitated the weakening of the euro and the yen, respectively, amidst expectations of monetary policy normalisation in the US. Already, Denmark and Canada have cut interest rates, while the proponents of interest rate increases in the UK are retreating.
The different resolution regimes may of course reflect specific aspects of a jurisdiction, such as the structure of its banking sector. But each country’s approach is also shaped by its history in dealing with a banking crisis. Some jurisdictions are already at an advanced stage in developing a designated resolution function. Others are just getting started.