Thursday, February 1, 2018

The associations generally support the FSB’s proposed guidance but suggest a few enhancements and clarifications. In particular, the associations recommend that the FSB’s final guidance should suggest that home resolution authorities publicly provide a general, non-firm specific overview of their resolution funding plans and preferred resolution strategies once they are fully developed. Such disclosure should increase market confidence about how public authorities will exercise their resolution powers during periods of financial distress and ultimately allow the market to assess the residual value of failed institutions more accurately, which will help to preserve financial stability and reduce the tendency toward destructive panic-and-run behavior that has been exhibited during such periods in the past. 

IIF Authors

Thilo Schweizer

Thilo
Schweizer
Policy Advisor
+1-202-684-7450
tschweizer@iif.com

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