Special Resolution Unit
The Special Resolution Unit (SRU) is a newly created area of the Bank, established to fulfil our responsibilities in relation to resolving failing banks. Bringing together people from a wide range of backgrounds – including policy, bank analysis, law and accountancy – the SRU plays an exciting and challenging role that’s core to maintaining financial stability.
The Banking Act 2009 introduced the Special Resolution Regime for UK banks and building societies. Under the regime, the Bank of England is responsible for deciding how to resolve a bank or building society which the FSA decides is unable to meet its threshold conditions for operating as a credit institution.
The SRU’s role is to coordinate the Bank’s response, and to decide which of the tools in the Act provide the best outcome in terms of financial stability, public confidence, protection of depositors and use of public funds. The options include transferring all or some of an institution to a purchaser; taking it into a Bank of England subsidiary, known as a bridge bank; and having it taken by the Treasury into temporary public ownership.
The SRU plays an important role in implementing the chosen resolution tool. Throughout the process, the SRU works very closely with many different areas across the Bank, with the FSA and the Treasury, and with a number of external stakeholders. The SRU also has an important role in refining the approach to bank resolution, through formulating and implementing policy in the UK and internationally.