Regulatory Alerts2018-01-01
Consultation Paper No. 5 of 2018 – Proposed Bank Recovery and Resolution Regulations
The Financial Services Regulatory Authority of the Abu Dhabi Global Market proposes new Bank Recovery and Resolution Regulations to establish a comprehensive regime for the orderly wind-down of failing financial institutions. The framework empowers the FSRA to act as both supervisor and resolution authority, requiring in-scope entities to engage in formal recovery planning and granting the regulator powers to intervene early or execute resolution tools such as debt write-downs. These measures aim to protect depositors and maintain financial stability while ensuring losses are borne by shareholders and unsecured creditors through strict safeguards and valuation processes.
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