BIS central bankers’ speeches  3  Developing a clear, credible approach to resolution It is important to develop and articulate a credible approach to such a resolution proceeding, for at least two reasons.
First, unless creditors and counterparties have well-grounded expectations as to how they will be treated in a resolution setting, they may need to charge a premium to compensate for the additional uncertainty associated with the disposition of their claims, which can lead to a mispricing of risks.