The Regulatory Landscape of Supervision and Resolution of Financial Institutions: A Cross-border Perspective

Abstract

Abstract This chapter describes the evolution of the regulatory landscape in which financial institutions operate, with a focus on the new normative approach that has emerged as a result of the global crisis. It offers an overview of the Basel Accords and other soft law initiatives undertaken by international regulators to preserve financial stability in situations of distress. These initiatives include the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions, which identify minimum standards for sound prudential regulation and supervision of financial institutions and various cooperation mechanisms. It examines the major coordination challenges that have to be addressed in the failure of cross-border institutions and describes how regulatory options and outcomes may vary depending on the linkages and possible degree of integration among jurisdictions as well as the cross-jurisdictional resolution strategies pursued under multiple points of entry or a single point of entry.