Resolution Library

Who is PIDM and What is Resolution Planning

As deposit insurer and resolution authority, PIDM contributes to financial system stability and preserves public confidence. PIDM will be implementing resolution planning, an exercise which entails PIDM working with member banks to develop a customised resolution plan to help facilitate a prompt and orderly resolution.


 

Resolution Planning and What it Means

PIDM’s resolution planning is carried out through a 3-stage iterative approach:
  1. Understand the bank better
  2. Address impediments to resolution through resolvability assessment
  3. Maintain readiness through continuous testing of resolution plan

 

Road to Resolution Readiness: Making Banks Resolvable

As banks are connected to each other, a sudden disruption in a bank may impact the broader financial system. Resolution planning entails putting in place pre-emptive arrangements to mitigate the potential contagion that may arise from a bank failure.