At the Federal Reserve, we have devoted substantially increased resources to monitoring financial stability and have refocused our regulatory and supervisory efforts to limit the buildup of systemic risk. This macroprudential approach to promoting financial stability will be an important complement to our other tools for promoting a healthy economy.
It simply puts a timeline within which the various stakeholders have to come up with a feasible resolution plan, to be approved by at least 75 per cent of the Committee of Creditors; only if this effort fails would the company end up in liquidation. II. Evolving regulatory framework 11.