The Financial Stability Board (FSB)'s invite for comment on the effective resolution of Systemically Important Financial Institutions (SIFI) will expire on Sept 2. In July, the agency had published the consultative document to seek opinions from affected financial institutions in dealing with the termination of their business activities in the event of bankruptcy.

As outlined in the document, the FSB seeks to address the issue on resolution powers and tools, cross-border arrangements, planning for resolution, and removing obstacles to resolvability. The agency is also seeking comment on its preliminary views, which include:

Creditor hierarchy, depositor preference, and depositor protection in resolution: Policy regarding consolidation and ranking of creditor's claims, treatment of deposit claims

Conditions for imposing temporary stays: Discusses possibility of imposing temporary suspension on contracts' termination rights to support some of the resolution tools

The final version of the recommendation, taking into account all comments received, will be presented to the G-20 Leaders Summit in Cannes on Nov. 3 of this year.