Cross-border Resolution of Financial Firms

CIGI Graduate Fellows Policy Brief No. 6

July 30, 2015

The absence of an effective international regime for cross-border resolution of financial firms led to the disorderly failure of a number of global banks during the global financial crisis, at a high cost to taxpayers and global financial stability. Many jurisdictions still lack sufficient resolution powers and arrangements for cross-border cooperation. This brief proposes that the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions should be fully implemented within the Group of Twenty (G20) and expanded to include non-G20 states. The FSB should develop a series of model laws on cross-border resolution and endorse a multilateral memorandum of understanding containing reciprocal commitments among the signatories.

Part of Series

CIGI Graduate Fellows Policy Brief Series

The CIGI Graduate Fellows program at the Balsillie School of International Affairs provides students with mentorship opportunities from senior scholars and policy makers. The program consists of research assistantships, policy brief writing workshops, interactive learning sessions with senior experts from CIGI and publication opportunities. Working under the direction of a project leader, graduate fellows conduct research in one of CIGI’s program areas. This series presents those policy briefs that have met CIGI’s publications standards.

About the Authors

Isabelle Duchaine is completing her M.A. in Global Governance at the BSIA, with a major research interest in regulatory complexities across numerous issue areas, from international bankruptcy to transnational surrogacy. 

Kateryna Dzhaha is completing the Wilfrid Laurier University Master of International Public Policy at the BSIA. She specializes in international environmental policy and international economic relations. 

James Supeene is completing the Master of International Public Policy program at the BSIA. His research concerns international political economy, trade policy and global finance. He holds a Bachelor of Economics and Political Science from the University of Waterloo.