This remains a cornerstone of our approach to both business as usual supervision and changes driven by Brexit. One area where greater regulatory convergence is needed is in relation to recovery and resolution. The Central Bank does not operate a zero failure regime. All firms can face difficulties. Some may recover, but others may fail.
Where failure does occur, it should happen in an orderly manner without significant financial stability or consumer protection issues. An appropriate framework is necessary to ensure failure is managed in a manner that minimises the impacts on financial stability, policyholders and beneficiaries in both home and host member states.