On 29 April 2019, the Financial Stability Board (FSB) published a report on its thematic review on bank resolution planning. The report evaluates the implementation by FSB jurisdictions of the resolution planning standard as set out in the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions. It focuses on resolution planning for all domestically incorporated banks that could be systemically significant or critical if they fail.

The peer review finds that bank resolution planning frameworks have been adopted in most FSB jurisdictions, these are most advanced for global systemically important banks (G-SIBs) and in jurisdictions that are home to them.

Notwithstanding the progress made, the review sets out recommendations that the FSB believes is needed to ensure that bank resolution plans can be put fully into effect:

  • FSB jurisdictions will take further steps to adopt and operationalise their resolution planning framework. Those jurisdictions identified in the report as not having a resolution planning framework should report to the FSB by June 2020 on actions undertaken, or planned, to adopt such a framework;
  • the FSB will undertake work to support member authorities’ resolution planning for banks other than G-SIBs that could be systemic in failure;
  • as authorities expand resolution planning work beyond G-SIBs, they should consider how to adapt existing FSB guidance to D-SIBs and other banks; and
  • the FSB will work with relevant authorities and other bodies to promote the sharing of bank resolution planning experiences, particularly for non-G-SIBs and with non-crisis management group host jurisdictions for G-SIBs.