2023 Resolution Report: “Applying lessons learnt”
The FSB’s review of the 2023 bank failures underscored the strengths of the international resolution framework and the work carried out by banks and authorities to increase resilience and crisis preparedness, while also identifying areas for further work.
These failures constituted the first real test at a larger scale of the international resolution framework established by the Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes). The FSB’s report on the 2023 bank failures identified preliminary lessons learnt regarding the FSB Key Attributes. Looking ahead, the FSB’s resolution workplan for 2024 builds on the areas identified in that report and includes several areas of work to further increase the resolvability of banks, central counterparties (CCPs), and insurers.
Banks: further enhancing readiness for resolution
The FSB’s review of the 2023 bank failures underscored the strengths of the international resolution framework and the work carried out by banks and authorities to increase resilience and crisis preparedness. The report identified several areas for further work, related to improving the operationalisation and implementation of the G-SIB resolution framework. In 2024, the FSB’s workplan will build on the lessons learnt. The FSB plans to review whether existing public sector backstop funding mechanisms are adequate for the range of potential failure scenarios; work with stakeholders to enhance implementation of the bail-in tool at a global level; and progress its work to address the challenges arising from digital innovation for resolution.
CCPs: another year of progress but more is expected
In September, the FSB published a consultation report on a proposed toolbox approach as a global standard for financial resources and tools for CCP resolution. In 2024, the FSB will publish the final report, following analysis of the consultation feedback. It will also review members’ experiences in applying the 2020 FSB guidance on financial resources to support CCP resolution.
Insurers: harmonising approaches to resolution planning and resolvability
The FSB postponed to 2024 the publication of the first list of insurers subject to the resolution planning standards consistent with the Key Attributes. The publication of the list will be a priority for 2024.
FSB's work on resolution in 2024
|Operationalising bail-in execution
|Resolution strategies and tools
|Public sector backstop funding mechanisms
|Loss-absorbing capacity for banks other than G-SIBs and assessment of systemic significance
|Role of deposit insurance in resolution
|Digital innovation issues for resolution
|Financial resources and tools for CCP resolution
|Identification and practices to determine insurers subject to resolution planning standards of the Key Attributes
|Resolution tools for different structures of insurance groups