Since the Global Financial Crisis, significant progress was made in establishing a framework for dealing with financial firms that are systemic in failure, while preserving financial stability and minimising the risk of loss to public funds. However, international guidance is lacking on how to design a framework for effectively dealing with failing non-systemic banks and residual parts of systemic banks following a resolution process. This paper explains why ordinary business insolvency rules are not sufficient for managing bank failures, even if they are not “systemic”. It elaborates on six key building blocks for an effective bank liquidation framework: (i) objectives of the system; (ii) an appropriate institutional set-up; (iii) opening of proceedings; (iv) effective liquidation tools; (v) enabling funding arrangements and a creditor ranking; and (vi) adequate safeguards.