Resolution of Problem Institution

Resolution of problem institutions refers to the process of addressing and rectifying issues within financial institutions that are facing difficulties or distress. This can involve various strategies and actions to stabilize, restructure, or, in extreme cases, wind down an institution. The goal is to mitigate the impact on the financial system and protect the interests of depositors, investors, and other stakeholders. Resolution measures may include capital injection, asset sales, restructuring of liabilities, or the use of regulatory tools to facilitate an orderly resolution process. The overarching aim is to maintain the stability and integrity of the financial system while minimizing the negative consequences of the institution's distress.