International Institute for the Unification of Private Law (UNIDROIT)
The UNIDROIT Legislative Guide on Bank Liquidation, adopted in May 2025, provides guidance to help legislators and policymakers design effective legal frameworks for the orderly liquidation of non-systemic banks. Its goal is to minimize the economic and social costs of bank failures by preserving value and protecting depositors.
Developed over three years in partnership with the Financial Stability Institute (FSI) of the Bank for International Settlements and based on proposals from the Bank of Italy and the European Banking Institute, the Guide was produced by an international working group of experts, supervisors, and resolution authorities.
The Guide complements the FSB Key Attributes on Bank Resolution by addressing the liquidation of banks that do not pose systemic risk and specific parts of banks during or after resolution. It also aligns with, but goes beyond, existing international insolvency frameworks, which were not tailored to the banking sector.
