The World Council of Credit Unions generally supports the Financial Stability Board’s (FSB) proposal on ways to improve stability of too-big-to-fail banks, but urged the board to make several changes in the final version to reduce potential regulatory burdens on credit unions.
The FSB is the agency for maintaining global financial stability, the international version of the U.S.’s Financial Stability Oversight Council.
In its letter, the World Council urged the FSB to limit its proposed “bail-in” requirements to systemically important banks only, because some other FSB standards, such as stress testing, are sometimes applied to credit unions that are not systemically important to the financial system.
The World Council also:
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