A first major step towards the resolvability of banks has been made here in Germany, where the so-called “Restrukturierungsgesetz”, the restructuring law, came into force at the beginning of this year. This law strengthens the powers of banking supervision authorities and contains comprehensive regulations that facilitate the restructuring and resolution of financial institutions.
While these reforms have made progress on the national level, the challenge now lies in the promotion of international consistency of these regimes. Therefore, the Financial Stability Board has developed an international framework for crossborder resolution which will be discussed at the upcoming summit in Cannes.