Resolution authorities organize their intervention strategies around two distinct operational pathways, depending on the structure of the multinational banking group.

In an SPE resolution, the resolution authority intervenes only at the top-tier parent holding company level. Losses are passed up from failing subsidiaries to the parent firm, where they are absorbed through a bail-in of the parent company’s shareholders and bondholders, keeping the operating subsidiaries open and functioning normally.

[Multinational Group Fails] ---> Resolution Split by National Borders ---> Local Authorities Manage Regional Units

Under an MPE strategy, the banking group is divided along national boundaries during a crisis. Individual regional resolution authorities step in to manage their local banking units independently, applying local bail-in tools and resolution protocols to address the failure within their own borders.