FSB has published its second thematic review on resolution regimes to support the implementation of its Key Attributes of Effective Resolution Regimes for Financial Institutions. FSB reports that:
- only a subset of the FSB membership, primarily home jurisdictions of global systemically important banks, currently have a bank resolution regime with a comprehensive set of powers broadly in line with the Key Attributes;
- jurisdictions vary on the application of resolution regimes to holding companies of banks, branches of foreign banks and material non-regulated operational entities within a financial group;
- there is also significant variation in the conditions for using resolution powers and their level of detail; and
- there has been more progress in processes for recovery planning than for resolution planning or resolvability assessments.
- introducing missing powers into bank resolution regimes;
- appropriate review and extension to the regimes;
- recovery and resolution planning requirements for all banks that are potentially systemic in failure; and
- new powers to require banks to take measures to improve their resolvability.
FSB wants members to report on progress by December. (Source: FSB publishes second thematic review on resolution regimes)