National supervisors should have the powers to apply differentiated supervisory requirements for institutions based on the risk they pose to the financial system. They should have the power to intervene effectively at an early stage, to mandate changes within an institution, to prevent unsound practices and ensure appropriate countermeasures including capital and liability restructuring.
With regard to resolution powers, an effective resolution regime must provide Authorities with the powers and tools to wind-down a firm quickly and safely, while ensuring the continued performance of essential financial functions and uninterrupted access of insured depositors to their funds in order to contain systemic risk.