Credit institutions take deposits from savers and investors and lend these funds out to borrowers. Borrowers can default in their obligations, while savers may withdraw their funds from the bank. The result is a high volatile business that requires additional safeguards to avoid overall failure. Such safeguards range from the central bank acting as a lender of last resort to provide liquidity to a financial institution in distress, to increased capital ratios and strict resolution planning.

Crisis resolution and temporary restrictions

The role of the lender of last resort

Creative bookkeeping and accounting values

Operational restructuring

Unsolvable situations

Asset recovery for creditors in bank failure