The FSB adopted the Key Attributes of Effective Resolution Regimes for Financial Institutions in 2011, with the aim of facilitating the resolution of financial institutions without severe systemic disruption or taxpayer losses, while protecting vital economic functions. One element of an effective resolution regime is a public sector backstop funding mechanism, which, if needed as a last resort, can provide temporary funding to firms in resolution to support orderly resolution.

The objective of the review is to examine progress made by FSB member jurisdictions in implementing Key Attribute 6 and the Guiding Principles on the Temporary Funding Needed to Support the Orderly Resolution of a Global Systemically Important Bank (“G-SIB”). The Summary Terms of Reference provides more details on the objectives, scope, and process for this review.

The FSB has distributed a questionnaire to FSB member jurisdictions to collect information. In addition, as part of this peer review, the FSB invites feedback from financial institutions, industry and consumer associations, academics, and other stakeholders on the implementation of public sector backstop funding mechanisms. This could include comments on:

  • how financial stability vulnerabilities associated with the liquidity needs of a G-SIB, or banks that may be systemically significant or critical if they fail (“banks systemic in failure”), during resolution differ across jurisdictions, and how these vulnerabilities are evolving;
  • the nature, credibility, and capabilities of public sector backstop funding mechanisms for banks in FSB jurisdictions, including:
    • the key design features of public sector backstop funding mechanisms to ensure their temporary, last-resort use to achieve an orderly resolution of a G-SIB or banks systemic in failure;
    • the conditions and provisions that mitigate taxpayer losses and minimise moral hazard risk;
  • experiences and challenges in addressing funding in resolution, and implications for public sector backstop funding mechanisms.

The peer review report is expected to be published in October 2026.