General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
April 25, 2018

FSB published an article by the Secretary General Dietrich Domanski on achieving the G20 goal of resilient market-based finance. This article considers factors that contributed to the crisis, explores the significant reforms that have changed the financial system for the better, identifies emerging risks that authorities need to consider, and explores how macro-prudential policies can address these risks.

The article adds that FSB members have agreed to take additional steps to strengthen shadow banking monitoring to facilitate better assessment of risks, concentrations and cross‑border interconnectedness. Specifically, authorities are seeking to: improve data granularity on assets and liabilities as well as on cross‑border interconnectedness; supplement flow of funds data with supervisory and/or commercially‑available data to assess risks; and improve information‑sharing on emerging risks. In addition, the authorities are seeking to strengthen system‑wide oversight. This includes:

  • Establishing a systematic process for assessing shadow banking risks and ensuring that any entities or activities that could pose material financial stability risks are brought within the regulatory perimeter
  • Addressing identified gaps in risk‑related data
  • Removing impediments to cooperation and information‑sharing between authorities

The article concludes that, as the financial system evolves, so do systemic risks. Policymakers need to constantly assess risks across the financial system and consider whether supervisors have sufficient tools to address emerging risks. Well‑designed monitoring and effective regulation and supervision support the identification of risks, along with their proper pricing and management in a way that preserves the benefits of diverse forms of financial intermediation. A clear macro-prudential approach will be the key to ensuring that market‑based finance continues to meet the needs of society.

 

Related Link: Article (PDF)

Keywords: International, Banking, Shadow Banking, G20, Financial Stability, Cross Border Cooperation, Market-Based Finance, Macro-Prudential Policy, FSB

Related Insights
News

CBB Proposes and Finalizes Rulebook Modules for Banks in November 2018

CBB announced the issuance of new leverage ratio requirements under Module CA (Part 3) for Islamic (Chapter CA-10) and conventional bank licensees (Chapter CA-15).

November 15, 2018 WebPage Regulatory News
News

IAIS Publishes Drafts of Revised ICP 8, ICP 15, ICP 16, and ICP 20

IAIS published the drafts of revised Insurance Core Principles on Public Disclosure (ICP 20), Investments (ICP 15), Enterprise Risk Management for Solvency Purposes (ICP 16), and Risk Management and Internal Controls (ICP 8), along with a revised draft of the glossary on enterprise risk management (ERM).

November 14, 2018 WebPage Regulatory News
News

MAS Amends Notice 637 on Capital Adequacy Requirements in Singapore

MAS published the final, revised Notice 637 on the risk-based capital adequacy requirements in Singapore.

November 13, 2018 WebPage Regulatory News
News

ESMA Updates Q&A on Implementation of CSD Regulation and MAR

ESMA updated questions and answers (Q&A) documents on the implementation of the Central Securities Depository (CSD) Regulation and Market Abuse Regulation (MAR).

November 12, 2018 WebPage Regulatory News
News

FSB Finalizes and Publishes the Cyber Lexicon

FSB published a cyber lexicon, following the public consultation earlier this year.

November 12, 2018 WebPage Regulatory News
News

SRB Updates Liability Data Reporting Template for 2019

SRB published version 2.7.1 of the Liability Data Reporting (LDR) Template.

November 12, 2018 WebPage Regulatory News
News

ECB to Conduct Comprehensive Assessment of Six Bulgarian Banks

ECB will undertake a comprehensive assessment of six Bulgarian banks. The exercise, comprising an asset quality review and a stress test, follows Bulgaria’s submission of a request to establish close cooperation with ECB on July 18, 2018.

November 12, 2018 WebPage Regulatory News
News

IMF Publishes Reports on the 2018 Article IV Consultation with Chile

IMF published its staff report and selected issues report under the 2018 Article IV consultation with Chile.

November 09, 2018 WebPage Regulatory News
News

PRA Issues PS27/18 on Implementing the Extension of SM&CR to Insurers

PRA published the policy statement PS27/18, which provides feedback to responses to the consultation paper CP20/18, on implementing the extension of the Senior Managers and Certification Regime (SM&CR) to insurers (Part 2).

November 09, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for November 2018

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

November 09, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2205