Document Type

Working Paper

Publication Date



International finance--Law and legislation


This CIGI Paper No. 51 was released on December 3, 2014 by the Centre for International Governance Innovation (CIGI) as a response to the Financial Stability Board’s (FSB) Consultative Document, “Cross-Border Recognition of Resolution Action.” Principally authored by CIGI Senior Fellow Steven L. Schwarcz (who works with the think tank’s International Law Research Program), the Paper comments on the policy measures proposed by the FSB, an international body that monitors and makes recommendations about the global financial system, to address the cross-border legal uncertainties of troubled systemically important financial firms. In that context, the Paper explains why a statutory approach is more effective than a contractual approach at removing obstacles in cross-border resolutions of those firms, and thus a better method to achieve financial stability. The Paper also recommends that the FSB establish a working group on statutory mechanisms for the cross-border resolution of financial firms.