The Basel Committee on Banking Supervision issued for consultation its recommendations for dealing with the failure of multinational financial firms.

The report sets out 10 recommendations designed to improve the resolution of a failing financial institution that has cross-border activities. The recommendations fall into three categories: strengthening national resolution powers and their cross-border implementation, firm-specific contingency planning, and reducing contagion.

Nout Wellink, chairman of the Basel Committee and president of the Netherlands Bank, noted that, “the recommendations seek to promote more orderly resolution of cross-border banks to reduce systemic risk and help address the too-big-to-fail problem”.

Comments on the paper are due by December 31.

IE