FSB launches second peer review on resolution regimes and invites feedback from stakeholders
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Ref no: 20/2015
The Financial Stability Board (FSB) has launched the second review of resolution regimes in FSB member jurisdictions. The objective of the 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.
The abbreviated terms of reference provide more details on the objectives, process and timelines of this review. A questionnaire to collect information from national authorities has been distributed to FSB members. The responses will be analysed and discussed by the FSB later this year. The peer review report will be published in early 2016.
As part of this peer review, the FSB invites feedback from financial institutions, industry and consumer associations as well as other stakeholders on the implementation of reforms to resolution regimes in the areas covered by the peer review. This could include comments on:
- the adequacy and nature of national resolution regimes for banks in FSB jurisdictions, including the institutional arrangements for resolution authorities and the role of the court in the resolution process;
- the scope and design of guidance by the authorities for entry into resolution and for the exercise of bank resolution powers;
- factors that may affect the way that resolution powers may be exercised in different resolution regimes and their implications for the effectiveness of those powers; and
- experiences and challenges with undergoing recovery or resolution planning and resolvability assessments.
Feedback should be submitted by 8 May 2015 to firstname.lastname@example.org under the subject heading “FSB Thematic Peer Review on Resolution Regimes.” Individual submissions will not be made public.
Notes to editors
The FSB has been established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with 65 other jurisdictions through its six regional consultative groups.
The FSB began a regular programme of peer reviews in 2010, consisting of thematic reviews and country reviews. The second peer review of resolution regimes is the eleventh thematic peer review conducted by the FSB. The objectives and guidelines for the conduct of these reviews are set forth in the Handbook for FSB Peer Reviews. All published peer review reports are available on the FSB website.
The Key Attributes for Effective Resolution Regimes for Financial Institutions (Key Attributes) are a key component of the FSB's policy framework for reducing the moral hazard. They were initially released by the FSB in November 2011 and endorsed by G20 Leaders at the Cannes Summit as a new international standard for resolution regimes for financial institutions. On 15 October 2014, the FSB reissued the Key Attributes incorporating guidance on their application to non-bank financial institutions and on arrangements for information sharing that support the effective resolution of cross-border financial institutions.
Resolution regimes have been identified as a priority area under the FSB’s Coordination Framework for Implementation Monitoring. As a result, the implementation of the Key Attributes by FSB member jurisdictions will undergo intensive monitoring and detailed reporting. To ensure effective implementation, the FSB decided to carry out an iterative series of peer reviews in this area. The first such review was completed in April 2013.
The FSB is chaired by Mark Carney, Governor of the Bank of England. Its Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.
For further information on the FSB, visit the FSB website, www.financialstabilityboard.org.