The Financial Stability Board (FSB) has released its 2024 Resolution Report, detailing progress in resolution reforms and outlining future priorities. The report highlights advancements in the banking, financial market infrastructure, and insurance sectors over the past year.
In response to lessons learned from the 2023 bank failures, the FSB concentrated on several areas throughout 2024. These include public sector backstop funding mechanisms, operationalisation of bail-in processes, and evaluating technological innovation's impact on resolution processes. The FSB plans to continue exploring these topics while promoting cross-border cooperation and information sharing with authorities outside Crisis Management Groups.
A significant development is the finalisation of a new global standard aimed at supporting the orderly resolution of central counterparties (CCPs). This standard ensures that necessary resources are available for a transparent and effective CCP resolution. ASX Clear (Futures) in Australia has been added to the list of systemically important CCPs across multiple jurisdictions.
For the first time, the FSB has published a list of insurers subject to resolution planning standards as per its Key Attributes of Effective Resolution Regimes for Financial Institutions. The list includes thirteen insurers identified by FSB member authorities. In 2025, efforts will focus on harmonising these standards' application scope for insurers.
Martin J. Gruenberg chairs the FSB Resolution Steering Group (ReSG), responsible for developing global standards and guidance for resolution regimes. The ReSG also oversees recovery and resolution planning for systemically important financial institutions.
Since December 2022, following a decision to discontinue annual identification of globally significant insurers, the FSB committed to publishing an annual list of insurers under resolution planning standards. It continues collaborating with the International Association of Insurance Supervisors (IAIS) on resolvability monitoring and reporting within the insurance sector.
The FSB coordinates international financial stability efforts among national authorities from 24 countries and jurisdictions, alongside international financial institutions and regulatory bodies. Klaas Knot chairs the FSB, with its Secretariat based in Basel, Switzerland.