07 May BCBS – Reviews institutional arrangements for bank resolution in 16 jurisdictions
May 7, 2021
Financial Stability Board’s post-great financial crisis key attributes of effective resolution regimes for financial institutions is the global standard for bank resolution. Independent administrative resolution authority is core to institutional arrangements. There should be governance mechanisms to control conflicts of interest between resolution and other authority functions, irrespective of where resolution functions are located.
Resolution and supervision conflicts can arise whether they are co-located or separate. Balancing resolution function independence with supervisory function synergies is key.
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