FSB launches thematic peer review on bank resolution planning and invites feedback from stakeholders4 June 2018
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Ref no: 17/2018
The Financial Stability Board (FSB) is seeking feedback from stakeholders as part of its third thematic peer review on resolution regimes, which it has recently launched. The objective of the review is to evaluate implementation by FSB jurisdictions of the resolution planning standard set out in the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions and in associated guidance in relation to banks. The Key Attributes are the international standard on resolution regimes, and form a key component of the FSB’s policy framework to address the risks associated with institutions that are too-big-to-fail.
The peer review will cover resolution planning for all domestically incorporated banks in FSB member jurisdictions that could be systemically significant or critical if they fail, i.e. global systemically important banks (G-SIBs), domestic systemically important banks (D-SIBs) and any other banks that could be systemic in failure and that are included in resolution planning at a jurisdictional level. Given that FSB work in recent years has been primarily focussed on resolution planning for G-SIBs, the review will focus in particular on banks other than G-SIBs and will explore the extent to which, and how, expectations set out in FSB guidance are applied to these institutions.
The Summary Terms of Reference provide more details on the objectives, scope and process for 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 the first half of 2019.
As part of this peer review, the FSB invites feedback from financial institutions, industry and consumer associations plus other stakeholders on the aspects of bank resolution planning covered by the peer review. This could include comments on:
the adequacy and nature of requirements and practices for resolution planning in FSB jurisdictions, including proportionality considerations for different types of banks;
the nature and scope of guidance by authorities in relation to resolution planning;
experiences and challenges from the development of resolution strategies and plans, including in a cross-border context;
the adequacy of public disclosures on bank resolution planning; and
experiences and challenges in addressing barriers to resolvability, and implications for resolution planning.
Feedback should be submitted by 4 July 2018 to [email protected] under the subject heading “FSB Thematic Peer Review on Bank Resolution Planning.” Individual submissions will not be made public.
Notes to editors
The FSB began a regular programme of peer reviews in 2010, consisting of thematic reviews and country reviews. Thematic reviews focus on the implementation and effectiveness across the FSB membership of international financial standards developed by standard-setting bodies and policies agreed within the FSB in a particular area important for global financial stability. Thematic reviews may also analyse other areas important for global financial stability where international standards or policies do not yet exist. The objectives of the reviews are to encourage consistent cross-country and cross-sector implementation; to evaluate (where possible) the extent to which standards and policies have had their intended results; and to identify gaps and weaknesses in reviewed areas and to make recommendations for potential follow-up (including through the development of new standards) by FSB members. Peer reviews are conducted according to the objectives and guidelines set out in the Handbook for FSB Peer Reviews. All completed peer review reports are available on the FSB website.
The Key Attributes were first issued by the FSB in November 2011 following their endorsement by G20 Leaders at the Cannes Summit. To ensure timely and effective implementation, the FSB is carrying out an iterative series of peer reviews on the implementation of the Key Attributes.
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. Through its six Regional Consultative Groups, the FSB conducts outreach with and receives input from an additional approximately 65 jurisdictions.
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.