Featured Product

    FSB Publishes Report on Assessment of Shadow Banking Activities

    July 03, 2017

    FSB published a report assessing the evolution of shadow banking activities and risks since the global financial crisis. This report, which responds to a request from the G20, also examines the adequacy of post-crisis policies and monitoring to address the shadow banking risks.

    The report focuses on the policies introduced since the financial crisis, to address financial stability risks from shadow banking. The assessment reveals that the aspects of shadow banking considered to have contributed to the global financial crisis have declined significantly and generally no longer pose financial stability risks. However, a rise in assets held in certain investment funds has increased the risks from liquidity transformation. These developments underscore the importance of effective operationalization and implementation of the FSB’s January 2017 policy recommendations to address structural vulnerabilities from asset management activities. To this end, IOSCO plans to publish consultative documents on liquidity risk management of open-ended funds in July 2017 and will finalize them by the end of 2017. IOSCO is also slated to identify and/or develop consistent leverage measures by the end of 2018.

     

    The report also reveals that FSB has not identified other new financial stability risks from shadow banking that would warrant additional regulatory action at the global level. However, since shadow banking evolves over time, authorities should continue to monitor vigilantly and address promptly emerging financial stability risks. To this end, the FSB member authorities have agreed on the following recommendations:

     

    Enhance system-wide oversight of shadow banking and policy responses to address the identified risks by implementing recommendations of the 2015–16 Peer Review.

    Strengthen the monitoring of shadow banking activities and data collection. The FSB will assess the data availability and make improvements to its annual monitoring exercise as appropriate in 2018.

    Complete the remaining policy development at the international level and implement the agreed policy recommendations to reduce risks and arbitrage opportunities across jurisdictions and sectors.

     

    Related Links

    Report on Shadow Banking Assessment (PDF)

    Policy Recommendations, January 2017 (PDF)

    Keywords: International, FSB, Shadow Banking, Financial Stability, Banking, Market Based Finance

    Related Articles
    News

    FASB Proposes Improvements to Derivatives and Hedging Standard

    FASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12).

    November 13, 2019 WebPage Regulatory News
    News

    FASB Approves Guidance to Assist in Transition to New Reference Rates

    FASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.

    November 13, 2019 WebPage Regulatory News
    News

    BIS and MAS Launch Innovation Hub in Singapore

    BIS and MAS launched the BIS Innovation Hub Center in Singapore.

    November 13, 2019 WebPage Regulatory News
    News

    MAS Collaborates on Research Platform to Support Fintech Investments

    MAS, Deloitte, and S&P Global Market Intelligence have collaborated to develop a prototype for an industry-wide Fintech Research Platform to help investors and financial institutions connect with fintech start-ups that they can partner with or invest in.

    November 12, 2019 WebPage Regulatory News
    News

    MAS and CSA Sign Agreement to Strengthen Collaboration in Fintech

    MAS and eight members of the Canadian Securities Administrators (CSA) signed a cooperation agreement to strengthen collaboration in fintech between Singapore and CSA’s member jurisdictions.

    November 12, 2019 WebPage Regulatory News
    News

    APRA Consults to Standardize Submission Date for Quarterly Reporting

    APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: First Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to two questions. The answers provide clarifications on topics related to own funds and strong customer authentication under the revised Payment Services Directive or PSD2.

    November 08, 2019 WebPage Regulatory News
    News

    FED Proposes to Extend Initial Compliance Dates Under SCCL Rule

    FED published a proposal to extend, by 18 months, the initial compliance dates for foreign banks subject to the single-counterparty credit limit (SCCL) rule.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Technical Package on Reporting Framework 2.9.1

    EBA published a new release of the reporting framework 2.9.1. This release includes validation rules, Data Point Model (DPM) data dictionary, XBRL taxonomy, and other supporting documents. Additionally, the release fixes some modeling issues on COREP Liquidity and FINREP.

    November 08, 2019 WebPage Regulatory News
    News

    BIS Paper Examines Shadow Banking System in China

    BIS published a working paper that analyzes money creation mechanisms of shadow banking tools in China, investigates their effects on financial risk, and surveys recent regulation.

    November 08, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4131