"Important work remains to be done to advance the capacity to
effectively operationalize a GSIB resolution," New York Fed
President William Dudley said of the so-called global
systemically important banking organizations that regulators
have identified as a key risk to the world economy were they to
get into trouble.
Dudley, one of the U.S. central bank's top regulators, said "a
more rational and less complex legal entity structure" is needed
to improve the banks' "resolvability."
Banks and supervisors must also ensure that critical operations
continue through the resolution, he added at a conference of
bankers, traders, and regulators hosted by The Clearing House.
Addressing a separate post-financial crisis reform, Dudley said
that 18 of the world's largest banks achieved a key cross-border
derivatives goal last week.
(Reporting by Jonathan Spicer and Rodrigo Campos; Editing by
Chizu Nomiyama)
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