Klaas Knot: Progress on the resolvability of GSIBs - the FSB perspective

Speech by Mr Klaas Knot, President of the Netherlands Bank, at the 2nd SRM-EBF Boardroom Dialogue, Brussels, 5 July 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Let me start by saying that I am here in two capacities, wearing two hats as it were. I am here both as vice-Chair of the Financial Stability Board, the FSB, and as president of the Dutch Central Bank. For this speech I will be wearing my FSB-hat.

As you may know, the FSB has actually been the instigator of many of the reforms and policy initiatives on bank resolution, including the topics being discussed today. With the development of the Key Attributes for effective resolution regimes in 2011, the FSB created the blueprint for the European resolution framework. This was followed by the TLAC standard for setting loss absorbing capacity for G-SIBs. So far, this is the only international standard developed by the FSB. Other guidance developed by the FSB covers topics such as bail-in, funding in resolution and operational continuity.

In this speech I will be taking the view of an FSB representative with a keen interest in making banks resolvable. This view should provide insight into the trends and priorities for achieving resolvability. Hopefully it will also guide your own efforts, as you work together with the SRB on topics such as: completing resolution plans, implementing TLAC and modelling funding in resolution. And even though the FSB focuses on policy development for G-SIBs, I think these topics are equally relevant for other banks.