The latest responses from a Financial Stability Board consultation reveal deep divisions within the financial sector over who should pay when a clearing house fails with big losses. By Justin Pugsley
Resolution and Recovery
EU gets CCP resolution and recovery rules over the line
The EU framework governing the resolution and recovery of failed central counterparty clearing houses (CCP) has been agreed and provides member states with a harmonised risk management system.
Gaps remain on resolution planning in too-big-to-fail reforms, FSB warns
Though global systemically important banks are now much more resilient than they were a decade ago, improvements are still needed for the winding down of failing institutions, warned the Financial Stability Board (FSB) in a report.
Banks told to incorporate Covid-19 ‘lessons’ in their resolution planning
The 2021 resolution plans filed by the eight largest and most complex US banks will have to detail how they integrated lessons learned from the coronavirus pandemic on top of the usual core elements, two prudential regulators have said.
FSB throws CCP equity on the line in resolution consultation
The FSB has once again waded into the controversial debate over who pays when a clearing house goes under and in a consultation paper is looking at a range of options including the use of equity
FSB consults on CCP resources for resolution
The Financial Stability Board (FSB) is consulting on guidance around the adequacy of financial resources of central counterparty clearing houses (CCP) in the event of them failing and going into resolution.
BRRD could be sidelined in the event of widespread bank failures
With Europe sliding into a deep economic slumber following the Covid-19 pandemic, questions are being asked about the state of some the continent’s banks and whether BRRD is up to resolving them if it comes to that
US regulators extend consultation period for foreign bank resolution plans
US federal prudential regulators have extended the consultation period for proposed guidance for resolution plans submitted by certain large foreign banks by 30 days.
IMF warns about vulnerable banking systems
As a result of the economic turmoil unleashed by the Covid-19 pandemic, the banking systems of some countries may have to be recapitalised or restructured, the IMF warned.
Swiss banks living wills approved, but some need improvement
The recovery and resolution plans or living wills of the two largest Swiss banks have been given the green light by the Swiss Financial Market Supervisory Authority (FINMA), but some of the smaller institutions need to make improvements.
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