The SRR gives four tools to the three Tripartite Authorities to cope with failing institutions: •  First, the transfer of all or part of a bank’s business to a private sector purchaser; something we have already seen used in the resolution of Bradford and Bingley and Kaupthing under the Special Provisions Act. •  Second, the transfer of the viable part of a bank’s business to a temporary bridge bank owned by the Bank of England. This would allow continuity of banking services  4  BIS Review 132/2008  for its customers whilst enabling due diligence by potential private sector purchasers and providing for the orderly wind down of the rump. •  Third, temporary public ownership which would give the treasury the power to transfer the shares of a failing bank to a nominee of the Treasury. This power would be used in cases where significant amounts of public sector funds are required to stabilise the failing bank or where long term restructuring of the bank is necessary. •  Fourth bank insolvency procedures – a last resort. This would look much like a standard company insolvency but with the important difference that the liquidator’s primary objective would be to assist the FSCS in protecting depositors. I can understand why there has been some nervousness among banks and investors about this regime and particularly about the powers to split failing banks into “good” and “bad” parts.
This would enable us to also seize opportunities to tackle these “twin challenges” in an integrated manner. It is my sincere hope that today’s event, along with the release of the report, will encourage broader dialogue and increase awareness around nature-related risks and opportunities, in turn paving the way for concrete action on this important front. I would like to thank the World Bank for this fruitful collaboration, and the esteemed speakers joining us today. I look forward to the engaging sessions ahead. Read Report: An Exploration of Nature-related Financial Risks in Malaysia See also: BNM’s Climate Change website 1  IPBES. 2019. “The global assessment report on biodiversity and ecosystem services: summary for policymakers.” [Link to IPBES]  2 World Economic Forum New Nature Economy Series [Link to PDF] 3 2/3  BIS central bankers' speeches  3 UN Biodiversity page [Link] 4 SDG 8. 5 SDG 3. 6 "Life on land” is SDG 15, “Life below water” is SDG 14. 7 Network for Greening the Financial System. 3/3  BIS central bankers' speeches