Cross-Border Recognition of Foreign Resolution Actions: The Statutory Regime in the United Kingdom

When a bank fails, the relevant authorities may have to place the firm into a resolution procedure to ensure it fails in an orderly way. Given the cross-border nature of banking operations, it may be necessary for the authority to obtain “recognition” of its actions by authorities in other jurisdictions. This chapter provides an in-depth overview of the UK’s statutory recognition regime of foreign resolution actions: why it is important; when recognition will be granted or refused; and the formalities and practicalities of the recognition process.