International Comparative of resolution frameworks

Resolution: a new instrument to deal with failing banks

01 The new resolution framework Resolution: a new instrument to deal with failing banks

G-20 commitment in 2011

“The new resolution framework should set out the responsibilities, instruments and powers to enable authorities to resolve failing financial firms in an orderly manner, by protecting critical functions and without exposing the taxpayer to the risk of loss”.

Global banks need to be viable, albeit resoluble

Enough loss-absorbing liabilities (Loss-Absorbing Capacity)

Legal entity structures: clear and feasible mapping of interdependences

Operating model: operational continuity of shared services

The FSB, in 2011, released a set of essential principles necessary for an effective resolution regime: The Key Attributes (KA)

Fuente: BBVA Research

Leer más Informes de:

Economía Internacional