Resolution
FSB finalises elements of global bank resolution framework
The raft of documents includes final principles for effective cross-border resolution actions; latest list of globally systemic banks also published
PRA plans to subject ‘other systemic institutions’ to tougher scrutiny
Institutions designated as O-Siis would face tighter scrutiny and be expected to produce resolution plans, with the potential for further measures in the future
Hong Kong authorities look to bring shadow banks into resolution regime
Plans for resolution regime are advancing, with legislation expected by the end of the year; unregulated financial institutions can still be covered by the regime
JP Morgan exec challenges CCPs over skin in the game
'Why wouldn't you put up... all of your capital?' asks Olsen, at panel on CCP recovery and resolution at New York conference
South African deputy looks to fill gaps in resolution setup
Francois Groepe highlights main elements of proposals for a new resolution framework in South Africa; particular emphasis on creating a deposit guarantee scheme
Ukrainian governor declares victory in banking sector clean-up
Valeriia Gontareva says 54 banks were put into resolution as part of the National Bank of Ukraine’s efforts to put banks on a sounder footing
BoE’s Gracie praises TLAC and MREL standards
Executive director says loss-absorbing capacity provided by the two standards will help regulators co-operate across borders and ensure core functions can continue to operate
US rules on foreign banks criticised by SRB’s König
Elke König, head of the eurozone's bank resolution authority, says US requirements for foreign banks to have a local holding company run counter to the single point-of-entry approach to resolution
FSB peer review: home-host divide still looming large
Despite progress on supervising systemically important banks, relationships between supervisors across borders are still lukewarm
Bank of Spain remodels in light of SSM
Executive commission approves a new structure for bank resolution and regulation, as well as changes to the central bank’s cash management functions
Stevens cautious on bail-in efficacy
Reserve Bank of Australia governor says bail-in is subject to a ‘host’ of complexities that could mean it goes less smoothly in practice than regulators would like to believe
Economists split on reality of cross-border co-operation
Panelists at an event in London see continued obstacles to countries working together effectively during a crisis, although regional co-operation could be a partial solution
Hellwig and Wolf question efficacy of financial reforms
Martin Hellwig and Martin Wolf discuss flaws in financial reforms aimed at breaking the sovereign-bank linkage in book on country and political risk
EBA offers advice on determining ‘critical functions’ in resolution
Technical advice seeks to clarify EU resolution directive in setting out exactly which parts of a bank are essential for financial stability; bank resolution plans found to be lacking in some areas
IMF: Pan-African banks pose oversight challenges
Report highlights need to reconcile regional and national interests in currency unions in the continent to ensure effective regulation and supervision
EBA chairman says supervisors should break up unresolvable banks
Supervisory entities ‘should have the guts’ to break up an unresolvable bank, European Banking Authority chairman Andrea Enria tells Davos audience
FSB says ‘substantial’ work needed on resolution regimes
Financial Stability Board monitoring exercise finds that only four jurisdictions have resolution regimes in line with its Key Attributes; India among those lagging behind on legislative amendments
Bank of England spells out resolution plans
Central bank details its approach to resolving a failed financial institution, including the use of bail-in, restructuring and international cooperation with other regulators
Fears surface over lack of trust among resolution authorities
Countries still do not trust one another enough to cooperate fully during the resolution of a globally systemic bank, participants at Chatham House event warn
Top UK and US officials join forces to enhance resolution
Officials including Mark Carney and Janet Yellen meet in Washington to improve transatlantic cooperation in the event of a global banking collapse
Carney hails ‘major achievement’ on resolution stays
Isda protocol signed by 18 major banks aims to solve cross-border legal issues, preventing a ‘cascade of termination events’ that could undermine an orderly resolution
EBA zeroes in on recovery and resolution trigger conditions
European Banking Authority publishes final guidelines on testing for bank failure and launches consultation on what conditions could trigger a resolution process
Bulgaria tells Brussels it can't guarantee failed bank deposits
Enforcing bank contributions to a deposit guarantee fund would destabilise the country's banking sector, Bulgarian governor and finance minister tell European Commission
Macro-prudential policies could ‘become part of the problem’, says BIS’ Borio
Weight of expectation on macro-prudential policies to address financial system stresses may be too great, says BIS economics head Claudio Borio; stress tests ‘woefully deficient’ in predicting crises