EU and China fall short on bank crisis readiness as global watchdog warns most countries are unprepared

From the Newshound archive · first published 9 October 2026 · last updated 10 October 2026.

The US, UK, Japan and Hong Kong are among the handful that passed outright, while the EU, China, Australia and Switzerland were rated materially non-compliant. India and Argentina have no emergency safeguard whatsoever.

The FSB warns countries must fix gaps before a crisis hits — not scramble to build emergency arrangements under pressure.

Credit Suisse's near-collapse in 2023 — when Switzerland's central bank deployed over $180 billion to keep it afloat — exposed exactly the kind of vulnerability the watchdog says most countries still haven't fixed.

FSB chair Soledad Núñez called a credible public backstop 'essential', warning that without one, failing banks may have to be taken into full public ownership at taxpayers' expense.