FSB Releases Thematic Review of Resolution Regimes
Following the global financial crisis, the FSB published the Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes) as part of the package of policy measures to address the moral hazard risks posed by systemically important financial institutions (SIFIs). The Key Attributes set out the core elements of effective resolution regimes that apply to any financial institution that could be systemically significant or critical if it fails.
On 11 April 2013, the FSB released a Thematic Review of Resolution Regimes (Review). The objective of the review ws to evaluate FSB jurisdictions’ existing resolution regimes and any planned changes to those regimes using the Key Attributes as a benchmark. The Review found that major legislative reforms have already been undertaken by some FSB jurisdictions (particularly those directly affected by the financial crisis) to develop new, or revise existing, resolution regimes, implementation of the Key Attributes is still at an early stage. The Review recommended full implementation of the Key Attributes, additional clarification on the Key Attributes from the FSB, and on-going FSB implementation monitoring.
Originally Published:
11/04/2013