Economics Financial Regulation Questions
The purpose of resolution frameworks in financial regulation is to provide a systematic and orderly process for resolving financial institutions that are at risk of failure or have failed. These frameworks aim to protect the stability of the financial system, minimize the impact on the economy, and safeguard the interests of depositors, investors, and other stakeholders. They establish mechanisms and tools for early intervention, restructuring, or winding down of troubled financial institutions, ensuring that their operations are managed in a way that avoids or mitigates systemic risks.