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.

FSB recommends:

  • 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)