The Financial Stability Board (FSB) released its annual Resolution Report, providing an overview of its resolution-related efforts over the past year and the progress made in implementing reforms across banking, financial market infrastructure, and insurance sectors. The report also outlines the FSB’s key priorities for 2025 to enhance the effectiveness of global resolution frameworks.
In light of the banking failures in 2023, the FSB has concentrated on refining the resolution framework for banks. The 2024 report highlights several areas of focus for the coming year, including operationalising transfer tools used in resolutions and improving the execution of open bank bail-ins. It also emphasises the need for enhanced monitoring and implementation of public sector backstop funding mechanisms. Additionally, the FSB will work to foster cross-border cooperation by sharing information with authorities outside Crisis Management Groups.
New standards
The FSB has finalised a global standard aimed at ensuring the orderly resolution of central counterparties (CCPs). This standard seeks to provide transparently calibrated resources to achieve an effective resolution process. Furthermore, the FSB has updated its list of systemically important CCPs, adding another entity that operates across multiple jurisdictions.
For the first time, the FSB has published a list of insurers subject to resolution planning standards aligned with its Key Attributes of Effective Resolution Regimes for Financial Institutions. This move marks a significant step in advancing resolution planning for the insurance sector. The report underscores the lessons learned from the 2023 banking crises and applies them to strengthen the broader financial resolution framework, including insurance companies and CCPs.
Promote cooperation
The FSB says that it remains committed to addressing gaps in the global resolution framework and ensuring its effective implementation. As part of its 2025 priorities, the organisation will continue to promote cooperation among global authorities, monitor compliance with resolution standards, and advance its technical work to adapt resolution tools to evolving financial challenges.
