The bridge institution tool is not usually considered a preferred option in banking resolution, because of its temporary nature, the fact that it does not provide, by design, a definitive solution for a failing credit institution and is burdensome upon the resolution authority. Despite these shortcomings and the considerable challenges in its implementation, we argue, in this text, that the bridge institution tool also presents considerable advantages and is an indispensable second-best option to have, ready to use, in the resolution authority’s toolkit. The flexibility enabled by the bridge institution tool, the fact that its implementation is almost only dependent on the resolution authority, its potential to serve as a competing alternative to a sale of business, thus mitigating the position of the resolution authority as a “forced seller”, and its effectiveness in ring-fencing the viable business of the failed credit institution from contingent liabilities are important reasons not to disregard this resolution tool.