On 5 December 2024, the Financial Stability Board (FSB) published its 2024 Resolution Report.
The Resolution Report takes stock of the FSB resolution-related work of the past year as well as of the progress made by FSB members in implementing resolution reforms and enhancing resolvability across the banking, financial market infrastructure, and insurance sectors. It also sets out the FSB’s 2025 priorities in the resolution area.
Banking resolution framework
As regards the FSB’s work to address the remaining lessons for the resolution framework from the 2023 bank failures the Resolution Report notes that the FSB will focus on the following in the coming year:
- Advancing the work on operationalising the use of transfer tools in resolution.
- Sharing information and enhancing monitoring of implementation of public sector backstop funding mechanisms.
- Supporting the work on open bank bail-in execution and securities law compliance building on the 2024 technical work.
- Promoting cross-border cooperation and information sharing with authorities outside of Crisis Management Groups.
CCPs
The FSB notes that it has finalised a new global standard to support the orderly resolution of a central counterparty (CCP). The standard aims to ensure that transparently calibrated resolution resources are available to achieve the orderly resolution of a CCP. In addition, the FSB has added a further entity to the list of CCPs that are systemically important in more than one jurisdiction.
Insurers
The FSB is also publishing a list of insurers subject to resolution planning standards consistent with the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes) for the first time.