FSB launches second peer review on resolution regimes

The objective of the review is to examine the range and nature of resolution powers that are available in FSB jurisdictions for the banking sector, and to take stock of any requirements for recovery and resolution planning for domestically incorporated banks in FSB jurisdictions that could be systemically significant or critical in failure.

The abbreviated terms of reference provide more details on the objectives, process and timelines of this review. A questionnaire to collect information from national authorities has been distributed to FSB members. The responses will be analysed and discussed by the FSB later this year. The peer review report will be published in early 2016.

As part of this peer review, the FSB invites feedback from financial institutions, industry and consumer associations as well as other stakeholders on the implementation of reforms to resolution regimes in the areas covered by the peer review. This could include comments on:

• the adequacy and nature of national resolution regimes for banks in FSB jurisdictions, including the institutional arrangements for resolution authorities and the role of the court in the resolution process;
• the scope and design of guidance by the authorities for entry into resolution and for the exercise of bank resolution powers;
• factors that may affect the way that resolution powers may be exercised in different resolution regimes and their implications for the effectiveness of those powers; and
• experiences and challenges with undergoing recovery or resolution planning and resolvability assessments.

Feedback should be submitted by 8 May 2015 to fsb@bis.org under the subject heading “FSB Thematic Peer Review on Resolution Regimes.” Individual submissions will not be made public.

The FSB has been established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with 65 other jurisdictions through its six regional consultative groups.

The FSB began a regular programme of peer reviews in 2010, consisting of thematic reviews and country reviews. The second peer review of resolution regimes is the eleventh thematic peer review conducted by the FSB. The objectives and guidelines for the conduct of these reviews are set forth in the Handbook for FSB Peer Reviews. All published peer review reports are available on the FSB website.