A logo of Swiss bank UBS is seen on their branch in Bern, Switzerland, April 21, 2026. LONDON, Oct 9 - The Financial Stability Board, the global body that monitors risks to the financial system, urged authorities on Friday to strengthen emergency funding arrangements for failing banks after finding major gaps in countries' ability to provide liquidity during a crisis.

In a peer review of progress against its standards for resolving banks without resorting to taxpayer-funded bailouts, the FSB found fewer than half of jurisdictions had funding arrangements that were clearly defined, large enough and capable of being deployed quickly The review forms part of work launched after 2023 banking turmoil, including the collapse of Credit Suisse.

Credit Suisse was taken over by UBS in a Swiss government-engineered rescue after suffering severe liquidity stress. The deal was supported by emergency liquidity facilities, a government liquidity backstop and the writedown of Additional Tier 1 bonds Recent bank failures had demonstrated how quickly lenders could come under acute liquidity stress, the FSB said It recommended that authorities identify in advance what temporary public funding could be made available during a bank failure, establish a clear legal basis for providing support and ensure they have powers to recover any losses, among other recommendations "Having a credible public sector backstop funding mechanism is essential," said Soledad Núñez, deputy governor of the Bank of Spain and chair of the peer review.