World’s Biggest Banks Still Pose Too-Big-to-Fail Risk, FSB Says
- FSB releases report calling for additional oversight steps
- FSB says industry has made progress despite challenges
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The world’s biggest banks still can’t be wound down in an orderly manner nearly eight years after the financial crisis, the Financial Stability Board said, calling for renewed efforts to tackle the risks posed by too-big-to-fail firms.
The FSB, led by Bank of England Governor Mark Carney, said in a report on Thursday that while significant progress has been made, firms and regulators need to better assess liquidity needs for lenders in resolution and to determine how creditors can share losses and replenish a failing bank’s capital.