FSB Not Planning Guidance on Solvent Wind-Down of G-SIB Portfolios
FSB published a summary of responses received to consultation on the solvent wind-down of the derivatives and trading book portfolio of a global systemically important bank (G-SIB). After carefully considering the comments and the fact that solvent wind-down of derivatives and trading portfolios capabilities differ across jurisdictions, FSB has decided not to develop further guidance on the solvent wind-down of derivatives and trading portfolios at this stage. FSB will continue to promote solvent wind-down of derivatives and trading portfolios planning as part of overall resolution planning.
The discussion paper sought comments on the possible future guidance, along with the rationale, for solvent wind-down of derivatives and trading portfolios planning. The discussion paper identified the capabilities of firms that are necessary to support solvent wind-down of derivatives and trading portfolios, including the ability to perform the analysis necessary to support the preparation of a wind-down plan along with timely assessment and analysis to be undertaken to support decision-making by management and authorities, as a firm prepares for execution and executes the plan. The consultation was launched in June 2019, with the comment period on the consultation ending on August 02, 2019. Six industry groups commented on the discussion paper, with some of the responses being consolidated efforts and resulting in FSB receiving three comment letters for the publication. Respondents generally opined that further guidance, if any, should be considered in a way that would limit or reduce regulatory divergence, acknowledge differing business models, and be principles-based and capabilities-focused.
Related Links
Keywords: International, Banking, Resolution Planning, G-SIB, Solvent Wind-Down, Derivatives, Recovery and Resolution, Trading Book, Systemic Risk, Responses to Consultation, FSB
Featured Experts

Blake Coules
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
Previous Article
FSB Not Planning Further Guidance on Resolution Planning DisclosuresRelated Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.