|
|
The FSB published its report to the G20 on progress in reform of resolution regimes and resolution planning for globally systemically important financial institutions (G-SIFIs).
Effective resolution regimes and resolution planning are core to the FSB’s policy for ensuring that G-SIFIs can be resolved without recourse to public subsidy and without disruption to the wider financial system. The FSB has identified the following priorities for 2015 to help further advance progress in this area:
FSB jurisdictions have made continued progress in adopting the powers and tools needed to resolve failing banks. Few jurisdictions have in place resolution regimes that are fully compliant with the Key Attributes and that also provide adequate powers for resolving failures in the non-bank financial sectors. The FSB will continue monitoring implementation of the Key Attributes to support implementation across all financial sectors, including for financial market infrastructures, insurers and firms that hold client assets.
The FSB also reports the initial results from the launch of the Resolvability Assessment Process (RAP). The RAP assesses the resolvability of each G-SIFI at the level of senior officials of the firm’s home and key host authorities. The initial assessments show that good progress has been made in resolution planning, but that material legal, operational and financial barriers to the feasibility and credibility of the resolution plans remain to be addressed. A number of those barriers relate to issues that are covered by the FSB work priorities for 2015 and may be mitigated as that work is finalised and implemented.