Status: Draft -- Not PublishedWill be live at 01/04/2016 00:00
IIF CBRWG Response to the FSB's Consultation Paper on G-SIB Funding in Resolution
The Associations welcomed the general themes of the FSB's consultation on "Guiding principles on the temporary funding needed to support the orderly resolution of a global systemically important bank" and stressed the importance of assuring liquidity support to a bank in the stabilization immediately after resolution. This should include preparations to make possible return to private-sector funding as soon as possible but should recognize the importance of making clear that central bank discount window or lender of last resort facilities, or special liquidity facilities under resolution statutes, will be available to a newly solvent bank after its bail-in or other form of resolution. Liquidity facilities to solvent banks in difficult situations have been recognized to be necessary since Bagehot in the 19th century and the comments recommend greater clarity about the availability of such facilities under the new international resolution regime envisioned by the FSB.