What we do and Why

What is resolution?

During the 2008 Global Financial Crisis, when large banks and financial institutions got into difficulty, Regulators and Governments found that the tools at their disposal were not fit for purpose. Some large banks were deemed “Too big to fail” and Governments were forced to bail them out using taxpayers’ money. When others were allowed to fail it sent shockwaves through the financial markets, resulting in financial instability and economic downturns.

In response, to prevent similar future crisis, international standards setters have:

  • Strengthened prudential requirements imposed on banks (Basel 3).
  • Identified global systemically important financial institutions and increased the prudential requirements they must comply with.
  • Introduced the concept of resolution regimes (via the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions).

Why is resolution important?

Resolution is a way to manage the failure of a bank, to minimise the impact on depositors, the financial system, and public finances.

Resolution is an alternative to corporate insolvency or bail out, both of which could have material impact on customers, the economy, government finances and financial stability.

A Resolution Authority is not designed to reduce the likelihood of a bank failing. Rather it is designed to reduce the impact of a failure through the use of resolution powers.

When deciding whether to act and which action to take, the JRA must have regard to and aim to best achieve the below Resolution Objectives (set by the Resolution Law). The Resolution Objectives are not listed in any order of significance and must be balanced as appropriate in each case. 


Ensure continuity of banking services in Jersey and provision of critical functions in Jersey

Protect jersey

Protect and enhance the stability of the financial system in Jersey, including preventing contagion and maintaining market discipline


Protect and enhance public confidence in the stability of the financial system in Jersey


Protect public funds

Protect deposits

Protect eligible depositors to the extent they have covered deposits

Finance loss

Protect clients assets