“We need to remember that the next crisis will be different to the last” – Deputy Governor Sharon Donnery

• Central Bank of Ireland hosted International Bank Resolution Readiness Seminar
• Global resolution framework has strengthened crisis management toolkit
• Future crises will see institutions allowed to fail without recourse to taxpayer bailouts

Today, Monday 2 December, the Central Bank hosted an International Bank Resolution Readiness Seminar. The Seminar brought together more than 60 resolution experts from across the globe, including senior delegates from the Single Resolution Board, European Banking Authority, the European Central Bank, the International Monetary Fund and the European Commission.

The Financial Stability Board’s ‘Key Attributes for Effective Resolution Regimes’ issued in the wake of the financial crisis, and which were adopted in the EU via the Bank Recovery and Resolution Directive (BRRD), provide for a comprehensive framework for dealing with failing institutions. The aim of the framework is to enhance both the resilience and the resolvability of institutions and to ensure that institutions are better prepared to deal with, and to recover from, future crises, with the aim of minimising the risk to public funds.

This Seminar provided an opportunity for authorities to discuss implementation of the existing framework and the effective application of resolution powers across different regions and jurisdictions. The conference also considered what changes, if any, could be incorporated into future iterations of the resolution frameworks.

Opening the seminar Deputy Governor Sharon Donnery said: “We don’t operate a zero fail policy. In order to protect our citizens and taxpayers, some banks will be resolved in an orderly way.

“It is over ten years since the financial crisis, we need to be ready. We need to learn the lessons but not fight the last war. Citizens and taxpayers are relying on us to do our jobs in their interest. We cannot let them down.”