Bezpieczny Bank

Leszek Pawłowicz
manager of the Banking Department in the Faculty of Management of the University of Gdańsk and an initiator and coordinator of the European Financial Congress

Marcin Borsuk
assistant professor at the Banking Department in the Faculty of Management of the University of Gdańsk and an employee of the National Bank of Poland

Temporary Funding in the Resolution Process

Abstract

Following the default of Lehman Brothers, governments around the world had to mobilise enormous rescue packages to cope with widespread financial panic. In these efforts a fundamental flaw in the international financial architecture became apparent, namely the inability of national supervisors to orchestrate orderly bank resolutions across borders. Since then, the international regulatory community has made efforts in devising the best approach to resolving large and cross-border banking groups. This article presents reflections on the recent regulatory initiatives in the field of loss-absorbing capital buffers and temporary funding needed to support the orderly resolution of a global systemically important bank (“G-SIB”).

Key words: resolution, resolution funding, capital buffers, G-SIBs, TLAC, MREL, burden sharing