The Role of Special Resolution Regimes in Post-crisis Financial Regulation: Four Danish Lessons

What is the best way to avoid that financial institutions become ‘too big to fail’? One approach particularly popular among policymakers is the building of special bank insolvency policies that aim to resolve any financial institutions without systemic consequences. Danish authorities are among the first to have actually used the new resolution approach, and the Danish case thus offers a number of lessons about the problems and potentials of special bank resolution regimes.