Financial Stability Board (FSB)
FSB pushes countries to meet higher information exchange standards
Financial Stability Board publishes latest progress report on information sharing, with thirteen jurisdictions still lagging behind; updates list of ‘financially important’ economies
Fischer questions FSB's democratic credentials
Fed vice-chair says Basel body not democratic ‘in a certain sense' but still a ‘great success'; argues it was set up specifically to circumvent IMF bureaucracy
Assessing credit risk post-crisis at a central bank
Eric Wolfe explains how the Bank of Canada has developed its own credit assessment processes to avoid mechanistic reliance on credit rating agencies.
G-20 Brisbane Summit: What to look for
Leaders of the G-20 countries meet this weekend to try to thrash out a deal on financial stability, growth and employment; Central Banking looks at some of the main issues on the table
FSB says ‘substantial’ work needed on resolution regimes
Financial Stability Board monitoring exercise finds that only four jurisdictions have resolution regimes in line with its Key Attributes; India among those lagging behind on legislative amendments
Netherlands at the ‘forefront’ of global reforms, says FSB
Peer review finds macro-prudential tools and crisis planning in the Netherlands are well-advanced, but FSB says authorities face challenges that provide ‘instructive test’
FSB overhauls website with help from Bank of Canada
New FSB website makes it easier for user to find and filter content; Mark Carney hails the revamp as a ‘collaborative effort’ from its members, in particular the Bank of Canada
FSB unveils loss-absorbency standards
Minimum standard for total loss-absorbing capacity aims to end ‘too-big-to-fail’ and should reduce the funding advantage of globally systemic banks, FSB says, in consultation document
People: Mark Carney reappointed as FSB chair; Bank of Portugal names new head of supervision
Governor of Bank of England gets second term as chair of the Financial Stability Board; Bank of Portugal appoints three new people in banking prudential supervision department; and more
FSB sees flaws in OTC derivatives reforms
Despite greater clarity emerging from the range of regulatory initiatives, there are still considerable differences in implementation between jurisdictions
FSB spotlight catches assets moving into the shadows
Shadow bank monitoring exercise shows assets stable inside the traditional banking sector but growing outside, as FSB publishes breakdown of data by jurisdiction for the first time
FSB warns of spillovers from new bank structures
Regulators in other jurisdictions fear potential knock-on impact from Liikanen, Vickers and Volcker reforms to bank structure
Top regulators seek to dispel myth of global regulatory harmonisation
Officials from IMF, Bank of England and US Treasury say perfect harmonisation is next to impossible; key now is a shift from design of standards to implementation
FSB moves to tackle shadow-banking risks from SFTs
Final framework for setting haircuts on certain securities financing transactions seeks to control leverage outside the banking system and reduce procyclicality
Carney hails ‘major achievement’ on resolution stays
Isda protocol signed by 18 major banks aims to solve cross-border legal issues, preventing a ‘cascade of termination events’ that could undermine an orderly resolution
Carney: G-20 summit will be ‘watershed’ in TBTF efforts
BoE governor looks ahead to G-20 meeting next month at IMF seminar on finance and ethics; describes Libor riggers as ‘totally detached’ from the consequences of their actions
FSB urges central banks to ‘take note’ of Iosco FX benchmark principles
Final report on FX rate benchmarks encourages central banks to heed Iosco recommendations; suggests changes to benchmark methodology to improve incentives
Focus on risk culture is ‘remaking’ the banking system
Patricia Jackson highlights ‘big shift’ in banking as firms implement more rigorous risk frameworks; BoE’s Andrew Bailey sets out the PRA’s approach
Carney spells out ‘right ideas’ for insurance regulation
Bank of England governor sets out three forthcoming strands of reform to the way insurers will be regulated, to avoid systemic crises in the style of AIG
Financial Stability Board prepares to publish FX benchmark reforms
Recommendations due to be published within days; broad consensus among market participants, but questions hang over certain elements
Carney hints at coming shift in FSB focus
Mark Carney says Financial Stability Board will need to shift its focus towards ‘evolving’ threats such as shadow banking; ending too-big-to-fail high on the agenda for Brisbane G-20 summit
FSB warns of ‘increasing signs of complacency' in financial markets
Concerns about the mispricing of liquidity risks are also raised at plenary meeting in Cairns this week, but ‘core of financial system continues to strengthen'
FSB estimates of Chinese shadow banking fall short of target, IMF representatives suggest
FSB's ‘filtering out' of parts of the non-bank financial system in China paints incomplete picture, IMF Asia division chief and HK representative say
Powell: Fed will ‘make sure’ swap market can ditch Libor
Central banks want to break the swap market's reliance on Libor, but the planned risk-free alternatives will have to be liquid, and the Fed expects to play a coordinating role