Featured Product

    FSB Outlines and Reprioritizes Its Work to Address COVID-19 Risks

    April 02, 2020

    FSB published a statement that outlines its work toward addressing the financial stability risks posed by COVID-19, along with the reprioritization of its work program for 2020. Also published was a statement and press release from G20 leaders, in response to the COVID-19 crisis, along with a summary of the meeting of the FSB Regional Consultative Group (RCG) for the Middle East and North Africa (MENA). During the meeting, members discussed recent financial market developments, including the financial stability implications from COVID-19. Among other issues, the RCG discussed the FSB work to develop effective practices for cyber incident response and recovery. A preliminary set of practices has been drawn from survey responses by authorities, including those in the region. The summary statement highlighted that, in early 2020, FSB plans to launch a consultation on a toolkit for cyber incident response and recovery.

    The overall work of FSB on COVID-19 will involve regular information-sharing on evolving financial stability threats and on the policy measures that financial authorities are taking. FSB will also work toward assessing financial risks and vulnerabilities in the current environment and coordinating policy responses to maintain global financial stability. FSB members are cooperating closely to coordinate action, including financial policy responses in their jurisdictions, to maintain global financial stability, keep markets open and functioning, and preserve the capacity of the financial system to finance growth.

    The COVID-19 crisis called for a reprioritization of FSB work program, which takes into account several factors. These factors include whether the work is relevant to current crisis management, whether the evolution of the crisis may substantially change the findings, whether there are other important reasons to maintain the existing timing and/or scope of the project, and whether postponing or scaling back the work could relieve COVID-related additional resource pressures on FSB members and staff and on financial institutions and other stakeholders. FSB will focus on monitoring the current risks to global financial stability, particularly the impact of COVID-19 on the resilience of the financial system. The main elements of the reprioritization are as follows:

    • The prioritization will support timely discussion of policy issues arising from vulnerabilities in non-bank financial intermediation that are surfacing during the COVID-19 crisis, along with decisions on how to organize such work in FSB going forward.
    • Prioritization will ensure that key deliverables to the Saudi G20 Presidency will be provided and that FSB completes initiatives on topics that are likely to remain of policy relevance in the near term.
    • The three-stage work to develop a roadmap on cross-border payments, in coordination with CPMI, will continue as scheduled, given the importance of efficient cross-border payments systems.
    • Technical work on central counterparty resolution and the implementation of the Total Loss-Absorbing Capacity standard remains a priority.
    • With respect to the OTC derivatives reforms, finalizing the oversight arrangements for Unique Product Identifier (UPI) and Unique Transactions Identifier will continue, as the UPI service provider awaits clarity on the oversight arrangements.
    • The transition from London Inter-bank Offered Rate (LIBOR) remains a priority, as firms cannot rely on LIBOR being produced after end 2021. Benchmark transition will help to strengthen the global financial system.
    • Implementation monitoring will track regulatory relief measures taken by standard-setting bodies. Other work will be reduced to the completion of near-final projects and the production of a streamlined annual report to G20.

     

    Related Links

    Keywords: International, Middle East and Africa, MENA, Banking, COVID-19, RCG, Work Program, IBOR Reform, Resolution Framework, OTC Derivatives, NBFI, Cyber Risk, FSB

    Featured Experts
    Related Articles
    News

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 23, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    News

    FCA to Begin to Move Firms to New Data Collection Platform RegData

    FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.

    September 23, 2020 WebPage Regulatory News
    News

    ISDA Expects IBOR Fallbacks to be Effective by End of January 2021

    ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.

    September 23, 2020 WebPage Regulatory News
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5836