Write 6 page essay on the topic Risk Protection Measures for the Bank.
Bank A may have the option to propose an early termination date in order to avoid further losses (FN3). However the contract between the two banks should make provision for such losses and one of the best options open to Bank A is to enter into an ISDA Agreement.
An ISDA Agreement allows a bank to operate in financial markets while conforming to strict regulations. The EU Directive 2001/24/EC dated 4 April 2001 has laid out specific guidelines on the winding up of credit institutions and will apply to both bank A and Bank A who are in Europe.