This practices paper was originally published in November 2021. This new version includes a supplementary note on implementation observations following the 2023 bank failures on communication with host authorities not members of a CMG.
This report sets out good practices that have helped CMGs to enhance their preparedness for the management and resolution of a cross-border financial crisis affecting a global systemically important bank (G-SIB) as per the FSB Key Attributes. It draws on a stocktake carried out by the FSB in 2020 and CMG members’ experience during the COVID-19 pandemic.
The focus is on CMG activities that seek to enhance crisis preparedness rather than on cooperation in actual crisis. The good practices identified in this report are organised along 16 desired outcomes that CMGs seek to achieve and relate to:
- the structure and operation of CMGs;
- resolution policy, strategy and resolvability assessments;
- coordination on enhancing firm’s resolvability; and
- enhancing home-host coordination arrangements for crisis preparedness.
A shared understanding of these practices can help lean against fragmented approaches and help to enhance the effectiveness of CMGs. While many of these practices have been well established, others are emerging or developing.
As CMGs continue to evolve, the FSB will continue to monitor the development of their practices and consider any future work to promote consistency and effective operation of CMGs.
