ContextWelcome speech at the Resolution Conference 2024, co-organised by the BIS, the FSB and deposit insurers; the BIS serves central banks worldwide and draws lessons from the 2023 bank failures.
Why it mattersLast year's failures show mid-sized lenders need more debt that can absorb losses before taxpayers do.
Problems raised
The 2023 bank failures tested resolution frameworks.
Mid-sized banks lack loss-absorbing debt.
Liquidity in crises is critical.
Solutions proposed
Require enough bail-in instruments.
Count deposit insurance and resolution funds in requirements.
