An in-depth study of resolution issues for financial co-operatives has been released for public consultation by the International Association of Deposit Insurers (IADI).
The release of the research was part of the IADI’s annual general meeting and conference, held this week in Québec City, Canada under the auspices of the Autorité des marchés financiers (AMF), the regulatory and oversight body for Québec’s financial sector.
This paper was drafted by the Subcommittee on Resolution Issues for Financial Cooperatives (SRIFC), which is chaired by Julien Reid, senior director, oversight of financial institutions, resolution and deposit insurance at the AMF.
Researchers used a survey of more than 100 deposit insurers and resolution authorities, along with case studies from 16 of the 17 deposit insurers that are SRIFC members. The resulting paper sets out the fundamentals of the issues faced by financial co-ops when they adapt resolution tools developed for banks.
“Through its chairmanship of the SRIFC, the AMF has shared the unique expertise it has acquired in supervising and regulating Desjardins Group, a domestic systemically important financial institution and the largest co-operative group in North America,” said AMF president and chief executive Louis Morisset.
“One of the objectives pursued with the publication of this research paper is to help raise greater awareness and generate a better understanding of the specific issues associated with adapting bank resolution tools to financial co-operatives.”
Following the end of the public consultation period, the SRIFC will review all comments received, synthesise the information and submit a final report.
• To take part in the consultation, visit: www.iadi.org/en/news/public-consultation-on-the-iadi-research-guidance-papers