Over 15 years of standard-setting by the Financial Stability Board (FSB), anchored in the Key Attributes of Effective Resolution Regimes for Financial Institutions and sectoral guidance, has laid a solid foundation for addressing financial crises. Several periods of turmoil have tested the resolution framework since its initial adoption in 2011.

These episodes highlighted its significant benefits but also uncovered gaps in the framework and its implementation, underscoring the need for better integration with broader crisis preparedness activities. A resilient global financial system depends on the ability of authorities to respond swiftly and effectively to financial institution distress or sectoral disruptions. This, in turn, requires thorough preparation by both authorities and financial institutions in advance of any potential failure.

The strategic review aims to:

  • strengthen and, where necessary, adapt the FSB’s crisis preparedness activities to respond to changes and emerging vulnerabilities in the global financial system, drawing on lessons learnt from the crises that have occurred since the FSB’s formation in 2009.
  • enhance the FSB’s crisis preparedness activities to consider all stages of a crisis, from early intervention measures through recovery and resolution to post-stabilisation restructuring.
  • refine internal processes and organisational structure to achieve the FSB’s strategic objectives for crisis preparedness.
  • strengthen the central role of the Key Attributes of Effective Resolution Regimes for Financial Institutions as the international standard for resolution regimes for financial institutions.

The FSB has appointed Andrea Enria, former Chair of the Supervisory Board of the European Central Bank and the first Chair of the European Banking Authority, to lead a high-level group who will conduct the strategic review of the FSB’s crisis preparedness activities. On his appointment, Mr Enria said, “The ability to manage crises effectively is not just a technical requirement but a cornerstone of global financial stability. I am honoured to chair this strategic review of the FSB’s crisis preparedness activities, which aims to ensure that the crisis management framework remains credible and fit for purpose.”