The next crisis will be different to the last warns Central Bank

The next crisis will be different to the last warns Central Bank

The Central Bank hosted an International Bank Resolution Readiness Seminar yesterday. The Seminar brought together more than 60 resolution experts from across the globe, including senior delegates from the Single Resolution Board, European Banking Authority, the European Central Bank, the International Monetary Fund and the European Commission.

The Seminar provided an opportunity for authorities to discuss implementation of the existing framework and the effective application of resolution powers across different regions and jurisdictions. The conference also considered what changes, if any, could be incorporated into future iterations of the resolution frameworks.

The Deputy of the Central Bank, Governor Sharon Donnery, warned that future crises will see institutions allowed to fail without recourse to taxpayer bailouts.

Opening the seminar, Donnery said, "We don’t operate a zero fail policy. In order to protect our citizens and taxpayers, some banks will be resolved in an orderly way. It is over ten years since the financial crisis, we need to be ready. We need to learn the lessons but not fight the last war. Citizens and taxpayers are relying on us to do our jobs in their interest. We cannot let them down."