To be resolved: inside banks’ ‘living wills’
Non-bank units and service providers make up large share of groups’ critical functions
US banks’ resolution plans – the documents that describe those critical entities that would unleash systemic risk if they failed – offer insights into where the true power lies within today’s financial bruisers.
Risk Quantum found that the eight US global systemically important banks (G-Sibs) together listed an aggregate of 169 material entities (ME) – units deemed essential to their operations – in their 2019 ‘living wills’.
But just a handful of these are designated as banks by federal
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