The achievement of the resolution objectives is the most important factor to be taken into account by resolution authorities when assessing resolvability, choosing the resolution tools and exercising the resolution powers.
When applying the resolution tools and exercising the resolution powers, the resolution authority shall have regard to the resolution objectives, and choose the tools and powers that best achieve the objectives that are relevant in the circumstances of the case.
When pursuing the resolution objectives, the resolution authority shall seek to minimise the cost of resolution and avoid destruction of value unless necessary to achieve the resolution objectives.
The resolution authority shall take into account all resolution objectives and balance them as appropriate to the nature and circumstances of each case, but all resolution objectives are of equal significance.
The resolution objectives are:
- to ensure the continuity of critical functions;
- to avoid a significant adverse effect on financial stability, in particular by preventing contagion, including to market infrastructures, and by maintaining market discipline;
- to protect public funds by minimising reliance on extraordinary public financial support;
- to protect depositors with insured deposits and investors covered by investor compensation schemes; and
- to protect client funds and client assets.