FSB publishes guidance and reports to G20 on resolution

The Financial Stability Board (FSB) has published two guidance papers as part of its policy agenda on ending too-big-to-fail (TBTF). The papers are intended to help firms and authorities in their resolution planning work and set out:

• guiding principles on temporary funding needed to support the orderly resolution of global systemically important banks (G-SIBs), which are intended to ensure that temporary funding is available to enable the effective resolution of G-SIBs without a public sector bail-out; and
• guidance on arrangements to support operational continuity in resolution, which discusses shared critical services that are necessary to maintain a firm's critical functions in resolution.

The FSB has also published its fifth report to the G20 on progress in its resolution work as it moves from policy design to implementation, including actions the FSB intends to take to fully implement the Key Attributes of Effective Resolution Regimes for Financial Institutions to ensure that all global systemically important financial institutions (G-SIFIs) are resolvable.

Alongside the publications, the FSB has also set out its work priorities for the remainder of 2016 and 2017 to:

• further develop its guidance on central counterparty (CCP) resolution;
• finalise the remaining elements of the Total Loss-Absorbing Capacity (TLAC) standard;
• support the resolution planning work of authorities and firms, including on maintaining access to financial market infrastructures and the operational execution of bail-in; and
• develop a Key Attributes assessment methodology for insurers.