The key elements of an effective resolution framework The discussion paper sets out the key elements of an effective resolution framework, as it could be applied to South Africa. It is important to understand that the term ‘resolution’ is not a synonym for ‘liquidation’, ‘curatorship’ or ‘administration’, the latter terms representing South Africa’s current arrangements for dealing with failed financial institutions.
Resolution in the context of the Key attributes is a new concept that requires a paradigm shift. Going forward, resolution is about earlier intervention, preserving value, restoring confidence, and preventing ‘fire sale’ losses.