But since we can never fully predict how bank failure will play out, a plan with no flexibility is not a good plan. Here, crisis simulation exercises are a key tool for developing flexibility. Conclusion Summing up, my three main messages this morning are: First, cooperation.
Cooperation between resolution authorities, but also with other authorities like DGS’s, supervisory authorities and ministries, is key to promote an effective and consistent resolution regime. Second, preparation. Although practice will be different from planning, we can boost the chances of successful resolution action if we step up crisis preparation, while maintaining a flexible approach. This will also decrease the legal risk of resolution actions.