FSB advances resolution operationalisation, sets 2026 agenda
The Financial Stability Board (FSB) has published its 2025 Resolution Report, highlighting ongoing efforts to strengthen global resolution regimes for banks, insurers, and financial market infrastructures. The report reviews achievements in 2025 and outlines plans to further enhance crisis preparedness in 2026.
Operational readiness advances
The Financial Stability Board (FSB) advanced its work in 2025 to support resolution authorities' operational readiness for responding to financial institution failures.
This included efforts to improve implementation, operationalisation, and rigorous testing of resolution frameworks.
For banks, the FSB supported the operationalisation of transfer tools by publishing a practices paper sharing insights from authorities' past experiences.
Work on bail-in execution progressed through a dedicated FSB task force, bringing together resolution and market authorities.
The FSB also facilitated information sharing among members on funding in resolution and improved coordination with authorities beyond firm-specific crisis management groups, drawing lessons from the 2023 bank failures.
In the insurance sector, the FSB initiated a consultation on guidance to identify insurers subject to recovery and resolution planning and issued an updated list of 17 such insurers.
For central counterparties (CCPs), the focus was on implementing guidance for financial resources and resolution tools, alongside efforts to enhance operational planning and cross-border coordination.
While foundational resolution frameworks are largely in place and most jurisdictions align with the FSB's Key Attributes, challenges persist in critical areas like funding in resolution and effective bail-in execution, particularly in cross-border contexts.
Addressing persistent challenges
Looking ahead to 2026, the FSB is actively working to address the remaining challenges in resolution implementation.
The Board plans to conduct a peer review of public sector backstop funding mechanisms and will synthesize practices on funding in resolution into a dedicated paper.
The dedicated task force will continue its work on bail-in execution.
Additionally, the FSB will undertake further initiatives to improve the operationalisation of resolution tools across all three sectors: banks, insurers, and financial market infrastructures.
Recognizing the evolving global financial system, the FSB is also planning to launch a strategic review of its crisis preparedness activities.
This review aims to ensure that the FSB's approach to preparing for potential distress or failure of financial institutions remains fit for purpose, incorporates lessons learned, and adapts to changes in the financial system.
A key objective of the review is to strengthen coordination among the FSB and other standard-setting bodies with crisis preparedness mandates, ensuring the approach adapts to emerging vulnerabilities and structural changes in the financial system.