What is resolution?

Resolution is the process of restructuring a credit institution or an investment firm (hereinafter collectively: institution) or a group thereof, which is failing or likely to fail, to ensure the continuity of the institution’s essential functions, to preserve the stability of the financial intermediary system, and to restore the viability of all or part of the institution or the group.

In Hungary, the resolution powers are exercised by the Central Bank of Hungary (MNB), acting in its capacity as the resolution authority.