ABSTRACT
This chapter explores the difficulties of cross-border recovery and resolution frameworks, and examines whether the approaches being used in the United States, the United Kingdom, European Union (EU), Australia and New Zealand offer ways forward, particularly in the EU. And whether they have also followed different routes with recovery and resolution plans. The chapter discusses the problems with the various approaches being used for the role of recovery and resolution plans for cross-border financial institutions (FI) in the future. The main objective of a recovery plan is to reduce the likelihood of a failure. During the recent Global Financial Crisis (GFC) mergers and acquisitions were popular options for the authorities to solve FI failures and avoid financial system's collapse. With the bank recovery and resolution directive (BRRD) and single resolution mechanism (SRM), the EU is trying to get a hybrid to work, where resolution may take place at the national level in an unrestructured and highly interdependent cross-border banking group.
