Progress toward resolvability to address TBTF problem: 10-year milestone since "Key Attributes"
June 22, 2022
Financial System and Bank Examination Department of the Bank of Japan
Supervision Bureau of the Financial Services Agency
Research and International Affairs Department of the Deposit Insurance Corporation of Japan
The Global Financial Crisis once again highlighted the "too big to fail" problem for systemically important financial institutions, and regulatory reforms since then have been implemented to address the issue. In this report, we focus on the resolution of global systemically important banks (G-SIBs) and highlight the progress since 2011, when the Financial Stability Board (FSB) set out the key elements of effective resolution regimes ("Key Attributes"). Over the past decade, the financial authorities in Japan and Japanese G-SIBs have cooperated to develop public regimes in Japan, build the internal framework in G-SIBs toward resolvability, and ensure effectiveness of the regimes. It is important to prepare for the next potential financial crisis when the financial system is stable, and the financial authorities in Japan will continue to make steady progress on this issue.
Notice
The Bank of Japan Review Series is published by the Bank to explain recent economic and financial topics for a wide range of readers. This report, 2022-E-3, is a translation of the Japanese original, 2022-J-7, published in May 2022. If you have any comments or questions, please contact the Financial System and Bank Examination Department of the Bank of Japan (E-mail : emu-.fsbe51_post@boj.or.jp). The Bank of Japan Review Series and the Bank of Japan Working Paper Series are available at https://www.boj.or.jp/en/index.htm.