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
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
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.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
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.