Financial sector resolution: broadening the regime
Read the full outcome
Detail of outcome
Summary of responses to the consultation on financial sector resolution
Original consultation
Consultation description
The government asked the Independent Commission on Banking to recommend ways to strengthen the resilience of the banking system and promote competition. In June this year the government published a white paper setting out how it would implement those recommendations.聽聽
But banks are only part of the financial system.聽Other types of financial institution can also pose a risk to financial stability, if there is no way for them to fail safely.聽And the disorderly failure of 바카라 사이트榝inancial market infrastructures바카라 사이트� 바카라 사이트� networks that connect market participants to each other 바카라 사이트� could also severely disrupt both financial markets and the normal functioning of the wider economy.聽
The government has聽therefore consulted聽industry聽on proposals to ensure that if parts of the financial system other than banks run into trouble, they can fail in a way that does not threaten financial stability, without requiring taxpayer support.聽The consultation focused on investment firms and financial holding companies, 바카라 사이트榗entral counterparties바카라 사이트� that place themselves in between two parties to certain financial transactions, other financial market infrastructures (such as payments systems), and insurers.聽
Next steps
The government has since set out a to address some of the issues raised in this consultation.
Special resolution regime powers over investment firms, clearing houses and group companies
The government has published an update on
Documents
Updates to this page
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Related impact assessment on loss allocation rules for central counterparties added.
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First published.