Bank Resolution in Europe: The Unfinished Agenda of Structural Reform

Jeffery N. Gordon, Georg Ringe

Research output: Other contributionNet publication - Internet publicationCommunication


Bank resolution is a key pillar of the European Banking Union. This column argues that the current structure of large EU banks is not conducive to an effective and unbiased resolution procedure. The authors would require systemically important banks to reorganise into a ‘holding company’ structure, where the parent company holds unsecured term debt sufficient to cover losses at its operating financial subsidiaries. This would facilitate a ‘single point of entry’ resolution procedure, minimising the risk of creditor runs and destructive ring-fencing by national regulators.
Original languageEnglish
Publication date28 Jan 2015
Publication statusPublished - 28 Jan 2015

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