A consultation paper published Friday sets out the issues faced in adapting resolution tools developed for banks to winding up financial co-operatives.
The paper, which was released at the annual meeting of the International Association of Deposit Insurers (IADI) in Quebec City, follows from a survey of more than 100 deposit insurers and resolution authorities, along with case studies from 16 deposit insurers.
It was drafted by the IADI’s subcommittee on resolution issues for financial co-operatives (SRIFC), which is chaired by Julien Reid, senior director, oversight of financial institutions, resolution and deposit insurance, Autorité des marchés financiers (AMF).
“Through its chairmanship of the SRIFC, the AMF has shared the unique expertise it has acquired in supervising and regulating Desjardins Group, a domestic systemically important financial institution and the largest co-operative group in North America,” says Louis Morisset, president and CEO, AMF, in a statement.
“One of the objectives pursued with the publication of this research paper is to help raise greater awareness and generate better understanding of the specific issues associated with adapting bank resolution tools to financial co-operatives,” he adds.
After the comment period, the SRIFC will finalize the report.