Second Thematic Review on Resolution Regimes
This thematic review forms part of a series of peer reviews to support timely and consistent implementation of the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions. The Key Attributes set out the core elements of effective resolution regimes, and form a key component of the FSB’s policy framework to address the moral hazard and systemic risks associated with institutions that are too-big-to-fail.
The peer review examines the range and nature of resolution powers available to authorities for the banking sector in FSB jurisdictions, as well as any requirements for recovery and resolution planning and resolvability assessments for domestically incorporated banks. The review finds that only a subset of the FSB membership – primarily home jurisdictions of global systemically important banks – currently have a bank resolution regime with a comprehensive set of powers broadly in line with the Key Attributes. The review makes a number of recommendations to FSB jurisdictions to address the identified gaps. As a follow-up to the review, the FSB will provide additional clarification and guidance in certain areas to assist jurisdictions in effective and consistent implementation, and to enhance, in collaboration with international financial institutions and other bodies, the sharing of experiences and practices on resolution regimes.