Effective Cooperation for Resolution of Financial Institutions in the Americas

Since the Association of Supervisors of Banks of the Americas (ASBA) published its report titled Effective Deposit Insurance Schemes and Bank Resolution Practices1 in September 2006, a new generation of standards for deposit insurance and bank resolutions has emerged. In the aftermath of the global financial crisis of 2007 to 2008, it became evident that financial stability requires a well-integrated financial safety net (FSN). The prolonged effects of the financial crisis eased the way for regulatory bodies to agree on elements that should be present in orderly resolution processes for institutions of all sizes, in conjunction with effective protection schemes for depositors and other clients or customers. Authorities in ASBA member jurisdictions have revised their financial stability frameworks based on these standards.