Banks to present 'living wills' to FSA

06 September 2010 at 15:44

Banks to present 'living wills' to FSA The UK's banks will present 'living wills' to the Financial Services Authority (FSA) next month ahead of the G20 Summit, to explain how they could be wound down in the event of failure.

According to the regulator, the 'too big to fail' mantra adopted by many banks was the reason why the recent financial crisis was so severe and these contingency measures would prevent a repeat occurrence, the Independent reports

The G20 Summit will take place in South Korea on November 11th and 12th and part of the discussions will be about how the global banking system could be reformed.

Some of the financial institutions set to submit drafts next month will include Standard Chartered, Barclays, Santander, HSBC, Royal Bank of Scotland and Lloyds Banking Group, the newspaper noted.

Following a meeting between European Union member states and the European Commission last week, it was agreed that from this year three new regulatory agencies will oversee banks, insurers and financial markets on the continent.

Posted by Claire Robin ADNFCR-3006-ID-800053503-ADNFCR

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