tailieunhanh - Key Attributes of Effective Resolution Regimes for Financial Institutions

What began as a bursting of the . housing market bubble and a rise in foreclosures has ballooned into a global financial and economic crisis. Some of the largest and most venerable banks, investment houses, and insurance companies have either declared bankruptcy or have had to be rescued financially. In October 2008, credit flows froze, lender confidence dropped, and one after another the economies of countries around the world dipped toward recession. The crisis exposed fundamental weaknesses in financial systems worldwide, and despite coordinated easing of monetary policy by governments, trillions of dollars in intervention by central banks and governments,. | FSB FINANCIAL STABILITY BOARD Key Attributes of Effective Resolution Regimes for Financial Institutions October 2011 Table of Contents Foreword . 1 1. Scope. 5 2. Resolution authority . 5 3. Resolution powers . 7 4. Set-off netting collateralisation segregation of client 5. Safeguards. 11 6. Funding of firms in resolution. 12 7. Legal framework conditions for cross-border cooperation. 13 8. Crisis Management Groups CMGs . 14 9. Institution-specific cross-border cooperation agreements. 14 10. Resolvability assessments. 15 11. Recovery and resolution planning. 16 12. Access to information and information sharing. 18 Annex I. Essential elements of institution-specific cross-border cooperation II. Resolvability assessments. 27 III. Essential elements of recovery and resolution IV. Temporary stay on early termination Foreword The Key Attributes of Effective Resolution Regimes for Financial Institutions the Key Attributesf set out the core elements that the FSB considers to be necessary for an effective resolution regime. Their implementation should allow authorities to resolve financial institutions in an orderly manner without taxpayer exposure to loss from solvency support while maintaining continuity of their vital economic functions. They set out twelve essential features that should be part of the resolution regimes of all jurisdictions. They relate to 1. Scope 2. Resolution authority 3. Resolution powers 4. Set-off netting collateralisation segregation of client assets 5. Safeguards 6. Funding of firms in resolution 7. Legal framework conditions for cross-border cooperation 8. Crisis Management Groups CMGs 9. Institution-specific cross-border cooperation agreements 10. Resolvability assessments 11. Recovery and resolution planning 12. Access to information and information sharing. Not all resolution powers set out in the Key Attributes are suitable for all sectors and all circumstances. To promote effective and

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