New Policy Analysis Paper
Posted on 15 May 2020

We are pleased to announce the second and third issues in the SEACEN Policy Analysis series. In the second issue, Glenn Tasky, SEACEN’s Director of Financial Stability and Supervision / Payment and Settlement Systems, suggests some solutions to the ambiguities and implementation issues surrounding the use of the bail-in tool. This paper may be particularly useful for those jurisdictions that are still developing their bank resolution frameworks, but it can also be a guide for those authorities who may already have the tool at their disposal and need some guidance on how to actually implement it. A future issue in this series will look at how bail-in has actually been used in the SEACEN stakeholder space, and possible obstacles to it being used more frequently.

This is followed by, “Crisis Preparedness in the Age of COVID-19: A Primer” also authored by Glenn Tasky. He sets forth the  complex issues that regulatory authorities (central banks, stand-alone regulatory authorities, and deposit insurance agencies, collectively RAs) may consider tackling promptly in dealing with the possibly severe  effects of the COVID-19 economic shutdowns and the likelihood of significant economic slowdown or recessions on the financial sector. Many RAs have taken steps to allow their banks to draw down capital and liquidity buffers, and some have softened provisioning requirements or the regulatory capital impact of higher provisions, but this paper goes further and outlines some additional actions that RAs may consider if they deem it appropriate under such systemic stress.

Click here to access both issues.

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