FSB to strengthen cross-border resolution and crisis preparedness
The Financial Stability Board has published its 2025 Resolution Report, reviewing global progress and setting priorities for 2026. The report outlines further work to operationalise resolution frameworks, focusing on cross-border challenges and crisis preparedness.
Foundations in place, operational readiness advanced
The Financial Stability Board (FSB) has released its 2025 Resolution Report, which assesses global advancements in implementing resolution reforms and enhancing crisis preparedness across the financial sector.
The report confirms that foundational resolution frameworks are largely established, with substantial progress noted in operational planning and resolvability assessments.
In 2025, the FSB concentrated on bolstering resolution authorities' operational readiness.
This included the publication of a practices paper on transfer tools, which provided insights and drew lessons from previous resolution cases.
The FSB also facilitated knowledge sharing regarding funding in resolution and advanced efforts on bail-in execution by establishing a dedicated task force.
Furthermore, the FSB issued draft guidance aimed at promoting consistency in determining which insurers should be subject to recovery and resolution planning requirements.
These efforts collectively aimed to strengthen the global resolution regimes for banks, insurers, and financial market infrastructures.
Addressing cross-border hurdles, reviewing preparedness
For 2026, the FSB will prioritize addressing critical challenges in resolution, specifically funding in resolution and effective cross-border bail-in execution.
Dominique Laboureix, Chair of the FSB Resolution Steering Group, stated: "In 2026, we will build on this momentum, focusing on removing remaining challenges to cross-border bail-in execution and funding in resolution, and advancing cross-sector information sharing and collaboration to further strengthen global financial stability.
" The FSB also plans a strategic review of its crisis preparedness activities to align with emerging risks and structural changes, and to strengthen coordination among relevant bodies.
An update to the Good Practices for Crisis Management Groups was published, enhancing crisis coordination between home and host authorities.
Steady progress, persistent challenges
The FSB's report underscores a continued, methodical approach to global financial stability, acknowledging significant progress while highlighting persistent operational hurdles.
The emphasis on cross-border challenges in bail-in and funding suggests these remain complex areas requiring concerted international effort.
The planned strategic review of crisis preparedness is crucial, ensuring frameworks adapt to an evolving financial landscape rather than resting on past achievements.