Most countries unprepared for bank failures, watchdog warns - Financial Times

The Financial Times reports that a global watchdog has warned most countries remain unprepared to manage bank failures, despite lessons from recent banking stress. The finding points to gaps in resolution planning—the frameworks that let authorities wind down a failing bank in an orderly way, protecting depositors and limiting contagion.

The concern is structural rather than tied to any single institution. When resolution regimes are weak or untested, losses can fall on taxpayers, and uninsured depositors may face uncertainty about access to their funds. Cross-border banks add complexity, since multiple regulators must coordinate quickly under stress.

For markets, the takeaway is that the post-2008 safety net is uneven. Watch for follow-up assessments, any push for stronger resolution powers or funding arrangements, and how banks adjust their funding and disclosure in response. The warning is a reminder that crisis-management capacity varies widely by jurisdiction—a background risk factor worth monitoring rather than a signal about any specific bank today.