At its 105th session (20-23 May 2025), UNIDROIT’s Governing Council adopted the UNIDROIT Legislative Guide on Bank Liquidation.
The UNIDROIT Legislative Guide on Bank Liquidation contains guidance for legislators and policymakers on how to design and implement effective legal frameworks for liquidating banks that do not have a systemic impact in failure. As such, it complements the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions. The Legislative Guide is organised into ten Chapters and contains 105 Recommendations on core issues that would be desirable to address in an effective bank liquidation framework.
The Legislative Guide is the result of a project undertaken by UNIDROIT in partnership with the Financial Stability Institute (FSI) of the Bank for International Settlements. Initially proposed by the European Banking Institute and the Bank of Italy, the Legislative Guide was developed over a three-year period by a Working Group chaired by UNIDROIT Governing Council Member Professor Stefania Bariatti and composed of international legal experts in the field of insolvency law and bank failure management. The Working Group benefited from the participation of 40 institutional observers – including international and regional bodies and organisations, and national banking supervisors, deposit insurers, and bank resolution authorities from all over the world. In 2024, an online consultation was organised to solicit feedback on the draft Legislative Guide, which was considered by the Working Group during its final session in November 2024. More information about the Working Group and the development of the Legislative Guide is available here.
The Legislative Guide as adopted by the Governing Council is available here. The Secretariat is now preparing the official English version of the instrument, which will be published on the UNIDROIT website in due course. Other language versions will follow.