FSB Issues Thematic Peer Review on Bank Resolution Planning
FSB launched the third thematic peer review on resolution regimes for banks. The review aims to evaluate implementation, by FSB jurisdictions, of the resolution planning standard set out in the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions and in associated guidance in relation to banks. The Key Attributes are the international standard on resolution regimes and form a key component of the FSB policy framework to address the risks associated with institutions that are too-big-to-fail. As part of this review, FSB is seeking feedback from stakeholders by July 04, 2018.
The Summary Terms of Reference on the peer review provide more details on the objectives, scope, and process for this review. The aim of the peer review is to:
- Evaluate progress in the adoption of requirements for bank resolution planning and resolvability assessments since the second (March 2016) resolution peer review
- Take stock of resolution planning practices in FSB jurisdictions for domestically incorporated banks that could be systemically significant or critical if they fail, focusing in particular on banks other than G-SIBs
- Highlight the range of practices and lessons of experience on bank resolution planning, including any challenges arising from implementation
- Identify jurisdictions’ approaches to resolution planning for banks that could be systemic in failure, including how proportionality considerations are reflected in resolution planning for those banks
- Identify material inconsistencies or gaps that are common across jurisdictions and make recommendations to address them to promote effective implementation
The peer review report, which is expected to be published in the first half of 2019, will describe the resolution planning frameworks and practices in FSB jurisdictions, including the progress since the second resolution peer review. It will describe the steps that those jurisdictions have taken as part of resolution planning to develop resolution strategies, implement resolution plans, and address barriers to resolvability, also highlighting differences in approaches across jurisdictions and by types of banks that could be systemic in failure. Progress in implementation of resolution planning requirements and the development of resolution plans will be illustrated with examples of different practices and the identification of areas where more work may be needed.
Related Links
Comment Due Date: July 04, 2018
Keywords: International, Banking, Resolution Planning, Thematic Review, Peer Review, Systemic Risk, 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
IAIS Publishes Newsletter for January 2019Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards