The exact mechanism for doing this would be contingent on multiple factors, including size, interconnectedness, complexity, business model and industry structure etc. 31. Alternate resolution mechanism: In spite of the above regime, if an institution fails on account of systemic stresses, the objective must be to minimise the cost for the taxpayers.
Different models have been proposed with the objective to allow the orderly resolution of a systemically important nonbank financial firm, including a mechanism to cover the costs of the resolution.