Publication

This publication argues that the absence of an effective international regime for cross-border resolution of financial firms led to the disorderly failure of a number of global banks during the 2008/2009 global financial crisis, at a high cost to taxpayers and global financial stability. The authors also contend that many jurisdictions still lack sufficient resolution powers and arrangements for cross-border cooperation. To address this problem, they suggest that the international standards for the resolution of financial firms as set out by the Key Attributes of Effective Resolution Regimes for Financial Institutions (KAs), which were developed by the Financial Stability Board (FSB), should be implemented across the G20 states. They also contend that the FSB should also develop a series of model laws on cross-border resolution and a multilateral mechanism for states to join to show they follow these laws and the KAs.