Of particular benefit is our business liaison program, which can give us an indication of whether wage and price pressures are starting to emerge in particular parts of the economy. That said, there are periods where this ability to rely on the gradual evolution of estimates of spare capacity breaks down, most notably the 1970s.
Because of this dual control, there are delays in resolution of this segment of banks right from the appointment of liquidators, gathering of information about depositors (which may not always be available in electronic form), depositor payouts and recovery of assets. 22. Globally, deposit insurance systems, with broad mandates, are assuming a significant role in the resolution of troubled banks.