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They also object to the resolution regime replacing bankruptcy.
"We have a very good resolution regime in this country," says one British official.
Perhaps the most important change now proposed is to allow such intervention through a "special resolution regime".
"The Bank appears to place a lot of reliance on the future new resolution regime working well.
Germany is working on a restructuring framework and Britain's Banking Act, passed last year, created a new "special resolution regime".
The so-called capital and resolution regime, after years of debate and fine-tuning, is supposed to be set in stone.
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Most countries are putting in place resolution regimes that allow regulators to shut down smaller banks.
Small-bank resolution regimes on the whole work well (see article).
Another reason why investors may prove coy is the new resolution regimes for banks.
His PRA has waded through the thicket of post-crisis regulation – capital buffers, resolution regimes and ringfencing – robustly.
Over the past year there has been much talk about creating "special resolution regimes" and "living wills" for failing banks.
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