The resolution tools are:
– the sale of bank.
-the bridge bank.
-the asset separation tools.
-the bail in tool.
*bridge bank: is a temporary bank to which part of assets/shares/ liabilities. in order to ensure the continuity of the bank, until a solution is found and market stabilize.
*Asset separation tool: this implies separation bad and good assets.
The bad assets are transfered to a special vehicle to clean its balance sheet.
*Bail-in-tool: aims to convert or wirte-down liabilities. it aims also to recapitalisation by its creditors.
