The Importance of Substantive Choice of Law Rules in International Bank Insolvency

The absence of substantive choice of law rules in international bank insolvency is a major problem that needs to be addressed. This is especially relevant in the EU and UK post-Brexit, as there will be more cross-border bank insolvencies. The lack of harmonized choice of law rules can lead to inconsistent judgments and inconsistent decisions, which can destroy asset value and prevent creditors from being treated fairly.

UNCITRAL can help to address these problems by developing harmonized choice of law rules for international bank insolvency. This would help to ensure that creditors are treated fairly and that asset value is protected.

The benefits of having harmonized choice of law rules for international bank insolvency include:

• Increased certainty for creditors and other stakeholders
• Reduced costs and delays
• Improved efficiency and effectiveness of cross-border insolvency proceedings