Despite the trend towards introducing bank resolution regimes around the world, APRA and the Reserve Bank of Australia have said very little about how such a regime might be adopted in their jurisdiction. This could be due to the provisions of the Banking Act 1959, which on the whole sets out very well the ability of APRA to step in and manage a failing bank, ranking of creditors upon a wind-up of the bank, and the protection available to depositors under the Financial Claims Scheme, brought into effect from 1 February 2012. Under section 13E of the Act, APRA may give a bank a recapitalisation order if it believes that the bank may not be able to meet its obligations or if the board of the bank informs APRA that they believe this to be case. This would trigger the bail-in of Additional Tier 1 and Tier 2 capital and extends to ordering a new equity raising. However, any new equity raised would have to be at a steep discount to attract a buyer. This is not impossible (think of Westpac and Kerry Packer in 1992) but at this point government funds could be called upon if the bank is considered too big to fail and other liabilities are not available to be bailed-in.An industry support scheme may also be invoked around this time. Other industry participants may agree to provide support funding to the struggling bank in return for an APRA certified industry support contract, which allows preferential treatment for creditors in the event of winding-up the bank concerned. In addition to these measures, APRA can take control of the failing bank's business and appoint a statutory manager, be it APRA or an administrator. The statutory manager will replace the board of the bank and have all the powers of the board to deal with the assets of the bank, as required.Under section 13C, APRA will remain in control of a bank until it is satisfied that the bank's deposit liabilities have been repaid or can be repaid, and it is no longer necessary for a statutory manager to be in control. Alternatively, if the bank is considered insolvent and unlikely to return to solvency, APRA can apply to the Federal Court of Australia for the bank to be wound-up.Either of these outcomes is referred to as an ultimate termination of control under which APRA must ensure new directors are appointed to the bank or a liquidator is appointed. If a liquidator is appointed, section 13A(3) sets out the priorities for application of a bank's assets in Australia:1.    Liabilities to APRA for depositor payments made under the Financial Claims Scheme2.    Debts to APRA due to the costs of administering the failing bank3.    Liabilities to depositors not covered by the financial claims scheme4.    Debts to the Reserve Bank of Australia5.    Liabilities under a certified industry support contract6.    All other liabilities in order of priorityImportantly, assets held in a cover pool to support covered bonds issued by the bank are excluded