Resolution Process

    The National Bank prepares resolution plans for systemically important commercial banks on an annual basis. It is through the plan that it does resolvability assessment and determines its resolution strategy through modeling.


    In case financial distress in a bank is determined, the severity of the financial crisis impact (FOLTF) is assessed by the supervision and resolution functions of the National Bank. As the grounds of the resolution are found, the issue is filed to the Resolution Committee of the National Bank for review and decision. The Committee studies factors such as the financial performance of the bank, the critical importance of its economic functions for the financial system stability and outlook, and considers the introduction of a resolution regime.


    Before the resolution tool comes into force, the elements of the available resolution plan are analyzed, the actual data are studied and the need for deviation from the plan is determined. A special manager of the resolution regime may be appointed and various effective actions may be taken.


    The resolution process, depending on the complexity of the strategy and implementation, may require the involvement of an inter-agency financial stability committee (that was set up as part of the reform), as a platform for cooperation in overcoming the challenges of the crisis.