United Kingdom: Financial Sector Assessment Program-Select Issues in Financial Safety Net Arrangements and Financial Crisis Preparedness
IMF Staff Country Reports, April 8, 2022
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- United Kingdom: Financial Sector Assessment Program-Select Issues in Financial Safety Net Arrangements and Financial Crisis Preparedness
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Bibliographic details
- Published: April 8, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400206733.002
Overall assessment
- The United Kingdom (U.K.) bank resolution and financial crisis readiness arrangements are sound but with opportunities for continued and accelerated enhancements.
- The U.K. authorities’ individual and collective crisis readiness—including with other major jurisdictions—continues to improve.
- Mid-2022, all major U.K. banks and the authorities will issue the first public statements about these banks’ resolvability.
Special resolution regime (SRR) and resolvability assessment framework (RAF)
- There is a comprehensive special resolution regime (SRR) and resolvability assessment framework (RAF) for banks.
- The existing SRR and RAF support public resolvability statements by major banks and authorities.
Gaps and areas for enhancement
- The SRR should be further enhanced, including:
- Its application to central counterparties (CCPs).
- Introduction of a special resolution regime for insurance companies.
- Elements of the deposit insurance system should be strengthened.
- Firm-specific resolution decision-making needs reinforcement.
Implementation and reputation risk
- Implementation risk and reputation risk associated with resolution and crisis arrangements should be addressed to improve overall effectiveness.
Subject and keywords (as provided)
- Subject: Bank resolution framework, Contingency planning, Crisis management, Financial crises, International organization, Monetary policy, Special resolution regime
- Keywords: Bank resolution framework, Contingency planning, Crisis management, financial crisis preparedness, FSAP's finding, Global, Resolution arrangement, resolvability Assessment framework, Special resolution regime, U.K. financial system
Content in this bundle
- 1gbrea2022007