Global banks can't be wound down with certainty, says FSB

Vienna

GLOBAL banks working in multiple countries still can't be wound down with certainty and in an orderly manner, one of the key goals world leaders put before the Financial Stability Board, the regulator led by Bank of England governor Mark Carney.

Nations need to enact comprehensive legislation that ensures other countries' decisions in winding down a bank are recognised and supported, the FSB said in a statement on Tuesday. Temporary stays on termination rights and "bail-in" rules to impose losses on creditors and shareholders are other areas in which impediments to cross-border resolution remain, according to the regulator.