Consultative document on Temporary Funding Needed to Support the Orderly Resolution of a Global Systemically Important Bank
The consultation sets out guiding principles for temporary funding of global systemically important banks (G-SIBs) in resolution. The principles will help to address the risk of banks having insufficient liquidity to maintain critical operations during a resolution. The principles are intended to ensure the effective resolution of G-SIBs without bail-out by the public sector and in a way that reduces moral hazard with a preference for private sector provision of liquidity. The guiding principles on temporary funding in resolution complement the FSB Key Attributes which provide a policy framework for resolution of systemically important firms. Public comments are welcome by 4 January 2016.