Global regulators have been called on by banks to adjust their plans for the closure of lending institutions who have failed. The banks have said that the current proposal doesn’t ensure cooperation between the regulatory bodies in the times of an international crisis.

The proposals, which were published in July have been criticised by the British Bankers’ Association for leaving to much scope for national regulators to just act in their own interests and this will come at the cost of overall stability.

The leaders of the worlds top 20 nations have asked the FSB to agree on how failing banks should be brought down in order to prevent more fall out than necessary to the rest of the financial system. There are two main options currently, one of which involves the sale of the banks assets. Another is for it to be dramatically scaled back in size and function as a smaller entity.

The new guidelines by the FSB require that banks will have to decide what should happen to them should they have a crisis. Angela Knight from the British Bankers’ Association has said, “The regulations need to be sufficient and clear and allow countries the time to implement measures.”