The 2008 financial crisis led to the renewed realization that close linkages between financial firms can also cause large-scale disruption when financial firms fail. This paper provides a brief description of the principles of cross-border resolution that have emerged since 2008 and an overview of developments on resolution of financial firms in India.

It finds that while there is cognizance of the need for international cooperation on resolution, the focus is on first developing institutional capacity on domestic resolution that can interact with the international community in the future. The policy choices of India may be reflective of the thinking in a large number of emerging markets, which lag considerably behind more developed markets.

Part of Series

These papers are an output of a project that aims to promote policy and institutional innovation in global economic governance in two key areas: governance of international monetary and financial relations and international collaboration in financial regulation. With authors from eight countries, the 11 papers in this series will add to existing knowledge and offer original recommendations for international policy cooperation and institutional innovation.
  • Renuka Sane is a visiting scientist at the Indian Statistical Institute, Delhi. Her research interests include pensions, household finance, public policy and consumer protection in finance. Renuka has been published in Macroeconomic Dynamics, Journal of Economic Policy Reform, and The Journal of Development Studies (forthcoming). She holds a Ph.D. in economics from the University of New South Wales, Australia.