Therefore a resolution mechanism needs to be put in place to ensure that non-viable banks are closed down and resolved. 4  BIS central bankers’ speeches  As in the case of supervision, a European dimension is of paramount relevance for effective resolution. It should shield timely and impartial decision-making from national bias.
The SRM institutional mandate should ensure that banks are not preserved at the taxpayers’ expense. The era in which the privatisation of profits and socialisation of losses was possible should belong to the past. In a private market economy, institutions cannot be shielded from a market exit.