Abbreviated terms of reference for second thematic peer review on resolution regimes
The FSB issued the Key Attributes of Effective Resolution Regimes for Financial Institutions (‘Key Attributes’) as part of the package of policy measures to address the moral hazard risks posed by systemically important financial institutions. The Key Attributes, which were endorsed by the G20 Leaders at the Cannes Summit, set out the core elements of effective resolution regimes that apply to any financial institution that could be systemically significant or critical in the event of failure.
To ensure effective implementation of the Key Attributes, the FSB decided to carry out a series of iterative peer reviews in this area. The first such review was completed in April 2013. The objective of the second such review is to examine the range and nature of resolution powers that are available in FSB jurisdictions for the banking sector, and to take stock of any requirements for recovery and resolution planning for domestically incorporated banks in FSB jurisdictions that could be systemically significant or critical in failure. This document outlines the proposed objectives, scope, approach and process for this review.