Resolution and RecoveryRSS

Private equity firms helped stabilise financial system during last crisis

Research has shown that private equity (PE) investors not only helped failing banks recover well by buying into them after the 2007–2009 global financial crisis (GFC), but also contributed to financial stability, according to a paper published by the Federal Deposit Insurance Corporation (FDIC) on April 22. 

Swiss systemic firms improve resolvability, but more work needed

Swiss systemically important financial institutions have been making good progress in their recovery and resolution planning according to an annual report from the Swiss Financial Market Supervisory Authority (FINMA) published on March 19.

FSB to publish recommendations to strengthen money market funds

The Financial Stability Board (FSB) will make recommendations to make money market funds (MMF) more resilient so they do not need public sector support next time markets are in turmoil as happened last March due to the Covid-9 pandemic, said Federal Reserve Board vice chair for supervision and FSB chair, Randal Quarles.

ECB says Covid-19 has reduced eurozone banks' recovery capacities

One of the key findings from the economic shock caused by the Covid-19 pandemic is that it may have significantly reduced the overall recovery capacity of eurozone banks, the European Central Bank (ECB) warned in its February supervisory newsletter.

Colleen Baker web

FSB treads fine line on CCP resolution issue in final guidance

Clearing house members have cautiously welcomed the latest FSB guidance on CCP resolution, which contained few surprises, but argue it should go even further. 

Resolution plan fixes of certain foreign banks approved by federal regulators

Weaknesses in the resolution plans of Barclays, Credit Suisse, Deutsche Bank and UBS have been remedied to the satisfaction of the two prudential federal regulatory agencies, which also issued guidance. 

FSB calls for authorities to “be prepared” in its resolution report

In its 2020 resolution report, the Financial Stability Board (FSB) said preparedness is the top priority for authorities as it outlines progress on implementing measures to enhance the resolvability of systemically important financial institutions. 

FSB publishes final guidance on CCP resolution

The Financial Stability Board (FSB) has published its final guidance on the resolution of central counterparty clearing houses (CCP) and the treatment of their equity and lays out five steps for assessing the financial resources of a clearer. 

Andrea Enria

Can the ECB’s bad bank idea work?

The chair of the European Central Bank’s supervisory board, Andrea Enria, is pushing for a eurozone ‘bad bank’, but faces stiff opposition and scepticism from politicians and banking experts alike. By Farah Khalique

FSB encourages use of its cyber toolkit to help preserve financial stability

The Financial Stability Board (FSB) published on October 19 its ‘toolkit of effective practices for financial institutions’ cyber incident response and recovery’ and is encouraging supervisors and firms to use it to enhance their capabilities.