The new resolution framework is intended to rectify the inconsistencies; to clarify the position of investors, depositors, policyholders and creditors in the event of a failure; to ensure the fair  BIS central bankers’ speeches  3  and transparent allocation of losses with appropriate safeguards; to put measures in place for the funding of resolution actions; to provide protection where it is most needed; and to introduce the tools necessary for maintaining financial stability and ensuring the continuation of critical financial services.
The key elements of an effective resolution framework The discussion paper sets out the key elements of an effective resolution framework, as it could be applied to South Africa. It is important to understand that the term ‘resolution’ is not a synonym for ‘liquidation’, ‘curatorship’ or ‘administration’, the latter terms representing South Africa’s current arrangements for dealing with failed financial institutions.