The Financial Stability Board (FSB) has published two consultative documents:

  • Principles on Bail-in Execution. This consultative document proposes a set of principles on the execution of bail-in to assist the work of authorities as they operationalise resolution strategies and plans. The principles cover the range of actions and processes required to identify the instruments and liabilities within the scope of bail-in; conduct valuations to inform and support the application of bail-in; develop a bail-in process that meets applicable securities law and securities exchange requirements; transfer governance and control rights and obtain regulatory approvals and authorisations; and communicate effectively with creditors and market participants more broadly in the course of the bail-in process; and
  • Funding Strategy Elements of an Implementable Resolution Plan. This consultative document provides additional guidance on the development of an implementable resolution funding plan to support the on-going work of authorities to operationalise resolution strategies and plans. It builds on existing supervisory and resolution guidance on liquidity risk management and resolution planning, respectively, and identifies a set of key funding strategy elements. These cover firm capabilities to support monitoring, reporting and estimating funding needs in resolution and to facilitate execution of the funding strategy; the development of the resolution funding plan by the authorities; firm assets and private sources of resolution funding; temporary public sector backstop funding mechanisms and ordinary central bank facilities; and information sharing and coordination between authorities.

The deadline for comments on both consultative documents is 2 February 2018.

View FSB consults on proposed guidance to support resolution planning and promote resolvability, 30 November 2017