FSB Consults on Aspects of Guidance for Resolution Planning for G-SIBs
FSB is consulting on two proposals for guidance on the implementation of particular aspects of its Key Attributes of Effective Resolution Regimes for global systemically important banks (G-SIBs). The two subjects of consultation constitute principles on bail-in execution and funding strategy elements of an implementable resolution plan. This guidance is intended to support the application of the overall policy framework to end “too-big-to-fail.” The consultations end on February 02, 2018.
Consultation on Principles on Bail-in Execution. The consultative document proposes a set of principles to assist authorities as they make G-SIB bail-in resolution strategies operational. The principles cover the following:
- Disclosures on the instruments and liabilities within the scope of bail-in
- Valuations to inform and support the application of bail-in
- Processes to suspend or cancel the listing of securities, to notify creditors, and to deliver new securities or tradable certificates following the entry into resolution
- Securities law and securities exchange requirements during the bail-in
- Processes for transferring governance and control rights and establishing a new board for the firm in resolution
- Market and creditor communications
Consultation on Funding Strategy Elements of an Implementable Resolution Plan. This consultative document sets out proposed guidance on the development of a plan for funding in resolution. The guidance builds on the FSB’s August 2016 Guiding Principles on the temporary funding needed to support the orderly resolution of a global systemically important bank (G-SIB) and on the existing supervisory and resolution guidance on liquidity risk management and resolution planning. It identifies a set of key funding strategy elements covering the following:
- A firm’s capabilities to support monitoring, reporting and estimating funding needs in resolution and to facilitate execution of the funding strategy
- The development of a resolution funding plan by the authorities
- The use of firm assets and private sources of funding
- Access to temporary public sector backstop funding mechanisms and ordinary central bank facilities
- Information sharing and coordination between authorities
Related Links
Comment Due Date: February 02, 2018
Keywords: International, Banking, Resolution Planning, Bail-In, G-SIB, FSB
Previous Article
ESMA Launched Consultation on MiFID II Suitability RequirementsRelated 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