FSB finds half of jurisdictions still have gaps in public-sector backstop funding

The Financial Stability Board has assessed how far its member jurisdictions have gone in building public sector backstop funding mechanisms for banks in resolution. The review, launched after the 2023 bank failures, finds material gaps in roughly half of jurisdictions fifteen years after the original recommendations, and sets out six recommendations for action before, not during, a crisis.

• The review finds further work is needed in a majority of jurisdictions, with approximately half still carrying material gaps fifteen years after the original recommendations.
• The report sets out six recommendations for jurisdictions to achieve full and consistent implementation of the FSB Recommendations on PBF mechanisms.
• The FSB is asked to support implementation by sharing good practices and closely monitoring progress on Key Attribute 6 and its Guiding Principles.
• The review examines implementation of Key Attribute 6 and the Guiding Principles on temporary funding to support the orderly resolution of a G-SIB, not the full range of resolution tools.

Executive summary

The Financial Stability Board published a Thematic Review on Public Sector Backstop Funding (PBF) Mechanisms, part of work initiated after the 2023 bank failures. The review assesses progress by FSB member jurisdictions in implementing Key Attribute 6 and the Guiding…

Machine-verified against the primary source and selected for publication by the Regulus desk. Not individually read by an editor. Lead briefings and anything our checks flag always are — how we review.