Purchase And Assumption (P&A)
Purchase And Assumption (P&A)
Definition: A resolution method in which a healthy insured institution purchases some or all of the assets and assumes the deposit liabilities of a failed bank or thrift. On a case-by-case basis, the assuming institution's bid may be sufficient to allow assumption of all the deposit liabilities of the failing institution, including the uninsured deposits.
Definition: A resolution method in which a healthy insured institution purchases some or all of the assets and assumes the deposit liabilities of a failed bank or thrift. On a case-by-case basis, the assuming institution's bid may be sufficient to allow assumption of all the deposit liabilities of the failing institution, including the uninsured deposits.