Regulators to finalise living will proposals
Regulators are pushing banks to write living wills to act as a blueprint for unwinding the firm in the event of its bankruptcy. But various challenges exist – not least around the resolution of large cross-border firms. By Christopher Whittall
Time is running out for rule-makers. The Group of 20 will convene in Seoul on November 11–12 and expects to sign pledges that should force banks to hold better-quality capital – and more of it. Politicians also want to see concrete proposals on bank recovery and resolution plans, or living wills, as part of a global effort to consign bank bail-outs by taxpayers to the history books.
“Living wills are a very important component of the effort to solve the too-big-to-fail question. We would like to
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