The world's biggest banks still can't be wound down in anorderly manner nearly eight years after the financial crisis, theFinancial Stability Board (FSB) said, calling for renewed effortsto tackle the risks posed by too-big-to-fail firms.

TheFSB, led by Bank of England Governor Mark Carney, said in a reporton Thursday that while significant progress has been made, firmsand regulators need to better assess liquidity needs for lenders inresolution and to determine how creditors can share losses andreplenish a failing bank's capital.

“Challenges remain in a number of important areas where we needto undertake renewed efforts during the remainder of the year andin 2017 to complete the job of ending 'too-big-to-fail,”' AndrewGracie, chair of the FSB's cross-border crisis management group forbanks and executive director for resolution at the BOE, said in astatement.

Among areas where progress has been made, the FSB said thatbanks have begun to develop issuance strategies to meet new totalloss-absorbing capacity requirements, and national regulators areworking on implementation of the standard. Lenders are also“putting in place arrangements to support operational continuity ofcritical shared services in resolution,” the FSB said.

Sufficient Liquidity

The FSB also released final guidance for banks to ensure theyhave sufficient liquidity to maintain critical functions during aresolution. The guidelines are meant to enable the largest banks tohave temporary funding without public bailouts.

The Basel-based regulator, whose members include the U.S.Federal Reserve and European Central Bank, called forimplementation of TLAC rules to be completed at the national level.The FSB said it will also publish additional guidance this year onthe standard and how it should apply to internal bankdivisions.

The FSB maintains a list of the world's 30 most systemicallyimportant banks, headed by HSBC Holdings Plc and JPMorgan Chase& Co., and including China Construction Bank Corp., BarclaysPlc, and Royal Bank of Scotland Group Plc.

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