The FSB and other standard-setting bodies have also begun work on margin activity in centrally cleared and non-centrally cleared markets during the peak of the market volatility last year. We observed that margin calls by some CCPs may have been larger than expected.
What, then, should the bank supervisory authorities, including the Bank, do to prepare for the removal of blanket deposit insurance? They need to prove that they have developed a sufficient crisis management system to prevent the materialization of systemic risk and ensure financial system stability.