On 6 June 2024, UNIDROIT Secretary-General Ignacio Tirado participated in the annual Legal Conference of the Single Resolution Board (SRB) in Brussels.
The event provided an excellent opportunity to present the Draft Legislative Guide on Bank Liquidation, for which a consultation process is currently ongoing.
In a panel on ‘A global approach to bank insolvency’, the Secretary-General explained the background, scope, and purpose of the Draft Legislative Guide and how it has been produced by the Working Group on Bank Insolvency as part of a project undertaken by UNIDROIT in partnership with the Financial Stability Institute (FSI). He then introduced some of the key building blocks for an effective bank liquidation framework as advocated in the Draft Legislative Guide, including an appropriate institutional set-up, effective liquidation tools, a creditor hierarchy that facilitates the implementation of those tools, and adequate safeguards.
The panel was moderated by Fernando Restoy (Chair, FSI). The other panellists were Elsie Addo Awadzi (Second Deputy Governor, Bank of Ghana), David Ramos Muñoz (Professor, University Carlos III of Madrid) and Ruth Walters (Senior Advisor, FSI), who discussed key aspects of the Draft Legislative Guide in more detail.
For more information about the SRB Legal Conference 2024, please see https://www.srb.europa.eu/en/content/srb-legal-conference-2024-navigating-legal-frontiers-eu-banking-union-and-beyond#agenda.
For more information about the consultation on the Draft Legislative Guide on Bank Liquidation, please see the consultation webpage.