Blog » Guidance paper: Ways to resolve a financial cooperative while keeping the cooperative structure by International Association of Deposit Insurers
The resolution tools are almost the same for banks and CFIs in most cases, but may need to be used differently for CFIs in other cases. Indeed, there are sometimes significant challenges associated with the use of certain resolution tools for CFIs. Some of those challenges make it difficult to keep the members, assets, and liabilities of a failing CFI in the financial cooperative system after an intervention. This paper analyzes ways to resolve a CFI - especially a non-systemic one - while keeping the cooperative structure.