Measuring the Implementation of the Fsb Key Attributes of Effective Resolution Regimes for Financial Institutions in the European Union

51 Pages Posted: 27 Nov 2018 Last revised: 29 Apr 2020

See all articles by Nicholas Coleman

Nicholas Coleman

Board of Governors of the Federal Reserve System

Andromachi Georgosouli

University of London - Centre for Commercial Law Studies (CCLS)

Tara Rice

Bank for International Settlements (BIS)

Date Written: 2018-11

Abstract

There are lingering concerns about the health of European banks and extensive market commentary about whether post-crisis regulatory reforms in Europe have adequately addressed these concerns. In June 2012, European policymakers released the broad outlines of a proposal for a "European banking union" to strengthen the banking sector and help assuage concerns of investors and depositors, however, uncertainty remains regarding how the new EU bank resolution regime, the Bank Recovery and Resolution Directive (BRRD), will work in practice. This paper addresses whether the BRRD has fulfilled the requirements of the FSB Key Attributes for Resolution Regimes, which many take to be the gold standard bank resolution framework. We find that the BRRD diverges from the FSB Key Attributes or allows variation at the Member State level in multiple areas. The majority of these variations point to slight inconsistencies with the FSB recommendations. That said, some variations may have a larger impact than others.

Keywords: FSB Key Attributes, BRRD, European Banks

JEL Classification: G20, G28, K23

Suggested Citation

Coleman, Nicholas and Georgosouli, Andromachi and Rice, Tara, Measuring the Implementation of the Fsb Key Attributes of Effective Resolution Regimes for Financial Institutions in the European Union (2018-11). FRB International Finance Discussion Paper No. 1238, Available at SSRN: https://ssrn.com/abstract=3288389 or http://dx.doi.org/10.17016/IFDP.2018.1238

Nicholas Coleman (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Andromachi Georgosouli

University of London - Centre for Commercial Law Studies (CCLS) ( email )

Lincoln's Inn Fields
Queen Mary, University of London,
London, WC2A 3JB
United Kingdom

Tara Rice

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

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