can pose a more material risk to financial stability. larger banks are required to hold a certain amount of their own equity and debt – mrel – that can be drawn on to recapitalise them when they fail, in order to reduce the risk of contagion. but we know it is harder for smaller firms, because of their size, to issue marketable debt securities that can count as eligible liabilities for mrel4 in the way that larger banks can. the bank has been working closely with hm treasury to develop an option to maintain continuity of access to deposits in the resolution of smaller firms, in a way that 5 / 9 bis - central bankers'speeches minimises the risk to public funds. the aim of this work is to help provide more flexibility when addressing the failure of smaller banks, where it is in the public interest to use resolution tools, and without public funds bearing the ultimate costs. we look forward to engaging in the debate on how this is achieved once proposals are brought forward. we are also taking steps to minimise the risk of disruption from firm failures where modified insolvency is the appropriate option. for small firms that may be placed into a bip, retail depositors are protected up to £85, 000opens in a new window – more in certain circumstances. we've been working with the fscs and pra to improve depositors'outcomes in a bip by building the capability to pay out more quickly electronically as an alternative to a cheque in the post. once in place, our focus will be on supporting depositor transition to new accounts and financial institutions. readiness for large bank resolution, including cross - border cooperation given london is a global financial centre, engagement with international authorities is also vital for our resolution readiness, particularly for larger banks. the role of cmgs has been invaluable in developing a coordinated approach and response to our largest international firms. the bank is a member of over 20 different cmgs, whether as home authority or host to a major international firm. that latter group included the credit suisse cmg as already discussed. there is little doubt in my mind that these discussions ultimately strengthened our response to the turbulence back in march. cmgs together with constructive dialogue with our stakeholders, for example via the trilateral principal level exercise ( tple ) opens in a new window with us and eu authorities, have built a deep understanding of our respective resolution frameworks, and set a clear path for future

##bfis ) against high quality assets, which will be used to address dysfunction in core uk financial markets that is severe enough to threaten financial stability. the development of this lending facility will reduce the need for the bank to support financial stability in future by undertaking financial stability asset purchases, as it did during the 2022 ldi episode. 10. for more information on trends in bank funding and liquidity, see box d of the december 2023 financial stability report. 11. for more detail, see ‘ explanatory note : managing the operational implications of apf unwind for asset sales, control of short - term market interest rates and the bank of england ’ s balance sheet ’ dave ramsden deputy governor, markets and banking ©2024 bank of england