In this latest edition of Regulation Around the World we review the position regarding recovery and resolution for banks.
Following the 2008 global financial crisis, the G20 leaders endorsed at the Cannes Summit in November 2011, the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions as the international standard for resolution regimes. An important component of the Key Attributes are the bail-in powers that authorities should have to achieve or help achieve continuity of critical functions. Most jurisdictions have adopted bank resolution planning frameworks based on the Key Attributes although the extent of their implementation varies across jurisdictions particularly for banks other than systemically important banks.