A bank adopts a single point of entry resolution strategy if it plans for the resolution authority in its home jurisdiction to bail in debt and recapitalise a single parent company, leaving operating subsidiaries (often in other jurisdictions) to continue unaffected. This approach is required under US law, and allows any international wholesale-focused bank to allocate funds across jurisdictions during a crisis, improving capital efficiency by avoiding localised ring-fencing as far as possible.
SINGLE POINT OF ENTRY RESOLUTION (SPE)
