By Julian Hattem - 09/03/13 07:54 PM EDT
Since 2009, the FSB has developed and recommended policies for regulators and lawmakers to make sure financial systems would be able to recover from failures of “systematically important” institutions.
The FSB is a coalition of central banks and financial agencies tasked with ensuring the soundness of the global market.
In the new report, the board suggests that governments empower regulators to share information, pass laws for institutions that operate internationally and ensure that supervisors have the tools they need.
"The initiative to end too-big-to-fail is ambitious, but essential for a more robust, competitive and fair financial system,” said Mark Carney, the FSB chairman and governor of the Bank of England.
“While much has been accomplished over the past few years, more needs to be done. In particular, jurisdictions need to implement fully the internationally agreed policies through additional legislation and regulation; cross border co-operation agreements must be struck, and policies for gone-concern loss absorbing capacity should be developed," he said.
The G-20 asked the panel to give an update on progress toward ending too-big-to-fail banks at the upcoming summit.