In the early years of resolution, banks didn’t seem to take the new regime very seriously. However, in recent years the resolution perspective has become more integrated in the hearts and minds of banks. We see that resolvability has increasingly become a standard consideration in strategic decisions. Institutions need to accept that resolvability has a cost.
And that the resolution authority can set requirements, which may impact their financial and organisational structure. Requirements for lossabsorbing capacity, operationalisation of resolution tools, contributions to financing arrangements: all these measures can be quite costly, but they are – as we all know – necessary to ensure effective resolution. And this is a message that banks increasingly agree to, but not without continuous efforts.