A resolution authority is a government authority that is responsible for preparing and implementing the resolution process of credit institutions and securities firms.
The Central Bank of Iceland has been given this authority. This includes the authority to make decisions on resolution proceedings and the application of resolution remedies for a financial undertaking that is failing, i.e. if it is unable to meet its obligations or if there is a significant likelihood that it will be unable to meet them.
The objective of the Resolution Authority is to preserve financial stability, including ensuring the continuation of essential operations of financial undertakings and avoiding significant negative impacts on the financial system. Furthermore, the goal is to minimise the risk of having to provide special public financial support to financial institutions, as well as to protect depositors, investors and the assets of the companies' customers.