FSB published a discussion paper on public disclosures for resolution planning and resolvability of banks. The paper focuses mainly on disclosures of resolution planning for global systemically important banks (G-SIBs) and explores how general and firm-specific disclosures on resolution planning and resolvability could be enhanced. However, many of the disclosure approaches discussed are also relevant for domestic systemically important banks and other firms subject to resolution planning requirements. Responses to the discussion paper are requested by August 02, 2019.
The discussion paper draws on current practices regarding the disclosure of general information by authorities and firm-specific information by both authorities and firms on resolution regimes and resolution planning. Feedback is being sought on the merits of such disclosures and ways to enhance disclosure practices. FSB is inviting comments, among others, on certain questions related to general and firm-specific resolution-related disclosures. FSB is also requesting feedback on what actions, if any, should FSB take to promote resolution-related (both general and firm-specific) disclosures.
The focus of the discussion paper is on ex-ante (“peace time”) disclosures on resolution planning and resolvability. Such disclosures should help strengthen market discipline and public accountability and offer additional incentives for firms to remove any remaining barriers to resolvability. Additionally, ex-ante disclosures may clarify expectations and strengthen market confidence in the resolution actions of authorities. The discussion paper does not cover communications and disclosures in the lead-up to a resolution or as a resolution event unfolds, nor does it discuss ex-post disclosures, such as information about specific resolution cases or legal cases. The paper should not be viewed as proposed guidance; rather, the responses to the public consultation will be considered to determine whether the development of guidance would be useful.
Comment Due Date: August 02, 2019
Keywords: International, Banking, Resolution Planning, Resolvability, G-SIB, Disclosure, Systemic Risk, FSB
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
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