FSB wants Sifi rules in place by 2013
Thursday July 21 2011 | 06:29 AM

The Financial Stability Board has laid down an ambitious timeline for its proposed regulations governing globally significant banks with first drafts of recovery plans due to be completed by the end of 2011.

In its Sifi consultation paper, the Board has outlined recommendations for cooperation agreements between banks and governments, as well as recovery and resolution plans, which it says are vital to prevent another global financial crisis.

By the end of 2012, the FSB wants Sifis to enter agreements with Governments and have recovery and resolution plans in place.

The Board says the first drafts of the recovery plans should be completed by the end of December 2011, while the resolution plans should be drafted by June 2012.

The FSB has called for governments and regulators to start resolvability talks with globally significant banks by June 2012.