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
Previous ArticleBoE Publishes Financial Stability Report in July 2019
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.