Principles on Bail-in Execution: Overview of Responses to the Public Consultation
On 30 November 2017, the FSB published a consultative document – Principles on Bail-in Execution – that proposed guidance on the operational execution of bail-in. The guidance should assist authorities as they develop bail-in resolution strategies and make resolution plans operational for global systemically important banks (G-SIBs). The guidance should support the implementation of the FSB’s Key Attributes for Effective Resolution Regimes for Financial Institutions, which set out the bail-in powers authorities should have for use in resolution, and the FSB’s standard on Total Loss-absorbing Capacity (TLAC), which defines a minimum requirement for the instruments and liabilities that should be readily available for bail-in within resolution at G-SIBs.
The FSB received nine responses to the public consultation from G-SIBs, industry associations and official sector bodies. Respondents generally welcomed the consultative document, and noted the importance of addressing the operational complexities associated with the implementation of bail-in.
This note summarises the comments raised in the public consultation and sets out the main changes that have been made to the final guidance to address them.