Financial Stability Board Finalizes Guidance to Support G-SIB Resolution Planning

Following consultation on draft guidance in November 2017, the Financial Stability Board has published two finalized guidance papers on aspects of the recovery and resolution of global systemically important banks.

The first guidance paper sets out Principles on Bail-in Execution. The Principles are designed to assist resolution authorities developing bail-in resolution strategies and making resolution plans for G-SIBs operational. The Principles cover six aspects of bail-in execution: (i) bail-in scope; (ii) valuation; (iii) exchange mechanic; (iv) securities law and securities exchange requirements; (v) governance and (vi) communications.

The second guidance paper, entitled "Funding Strategy Elements of an Implementable Resolution Plan," provides additional guidance for national regulators and resolution authorities on the development of an implementable resolution funding plan. This additional guidance supplements existing guidance on liquidity risk management and resolution planning.

View the Principles on Bail-In Execution.

View Funding Strategy Elements of an Implementable Resolution Plan.

View the FSB press release.

View details of the November 2017 consultation.

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