On 28 August 2013, the FSB published a consultative document on an Assessment Methodology for the Key Attributes of Effective Resolution Regimes for Financial Institutions. The consultative document proposed a single assessment methodology for the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions (‘Key Attributes’) with essential criteria for all financial sectors. The draft methodology was used as reference document in a series of field tests and the Second Thematic Review on Resolution Regimes published in March 2016.
As a result of this subsequent work, the FSB decided to take a modular approach in order to provide detailed sector-specific guidance on the application of the Key Attributes. The modular approach entails the division of the proposed assessment methodology into separate modules for the assessment of resolution regimes for banks, insurers and financial market infrastructures and takes the form of a self-contained and free-standing methodology for each sector. A modular approach allows for the development of criteria that are better tailored to the specific features of a particular sector and therefore facilitates sector-specific assessments of the Key Attributes.
The first such module, for the banking sector, was published on 19 October 2016. The module includes revisions to address comments from the public consultation and incorporates the experience of the field tests and the peer review. This note provides an overview of the post-consultation revisions.