The clearer it is to the bank’s creditors, counterparties and financial market infrastructure firms that a resolution comes with the expectation of access to public liquidity, if needed, the smaller the amount that may end up needing to be drawn-down. In contrast, doubts over whether and how liquidity will be made available to a bank upon its entry into resolution risk undermining a resolution, and leaving the authorities with a potentially far bigger problem. 8  All speeches are available online at www.bankofengland.co.uk/speeches  8  So it is important to ensure resolution and liquidity strategies are aligned - whether they are delivered by a single institution, as in the UK, or by separate ones. The Purple Book, to be published next week will set out the Bank of England’s approach to providing a liquidity backstop in resolution, where required. To be eligible, a bank will need to be restored to solvency by the bail in of shareholders and debt holders. It will need to meet the PRA’s authorisation conditions, including capital requirements, so that it can continue to operate while in resolution. Solvent but illiquid banks in such a situation would have access to the Bank’s published facilities subject to meeting the necessary eligibility criteria. To supplement those arrangements, the Bank also has put in place a new, flexible Resolution Liquidity Framework providing the tools to lend to banks which are in a Bank of England led resolution.
Philipp M Hildebrand: Monetary policy in a global context Speech by Mr Philipp M Hildebrand, Member of the Governing Board of the Swiss National Bank, at the Swiss-American Chamber of Commerce, Zurich, 8 October 2003. *  *  *  It is a special privilege to be able to give my first formal address as a central banker before the distinguished audience of the Swiss-American chamber of commerce. I have always been very fond of the Swiss-American friendship. It has been an integral part of my family’s life for several decades. More importantly, I am convinced it is an essential ingredient to the long-term vitality of the Swiss economy. Like any friendship, it has had to endure difficult moments. The vibrancy of your association is testimony to the fact that the cultural affinities and common interests between our two countries provide a reliable foundation for extensive and mutually beneficial economic relations. Let us strive to make this foundation as solid as the public service record of the Geneva-born Albert Gallatin, whom Thomas Jefferson appointed as the fourth Secretary of the U.S. Treasury in 1801. To this day, Gallatin remains not only the longest serving Treasury Secretary in the history of the United States but the only Swiss-American to have occupied that most prestigious position in the then newly established capital in Washington D.C. My focus today will be on the long period of global disinflation following Paul Volcker’s paradigmatic shift of monetary policy in the United States.