Report on progress on resolution policies and frameworks issued by the Basel Committee

6 July 2011

The Basel Committee on Banking Supervision today issued a report on Resolution policies and frameworks - progress so far. The report reflects the progress being made in the area of cross-border bank resolution since the Basel Committee issued a series of recommendations on this topic in March 2010.

The report also responds to the Financial Stability Board (FSB) November 2010 recommendations on systemically important financial institutions. In its recommendations, the FSB called for an assessment of the legislative and other changes to national regimes and policies needed to accomplish effective resolution of systemically important financial institutions. The Basel Committee report issued today is expected to provide an important input to the Key Attributes of Effective Resolution Regimes currently being developed by the FSB and which will be issued later this month.

As stated in today's report, further work is needed on the implementation of the Committee's cross-border bank resolution recommendations, particularly in the area of resolution of systemically important banks. The key findings of the report are:

The Committee will continue to work with the FSB in its broader effort to reduce the moral hazard of systemically important financial institutions.