Featured Product

    FSB Chair Reports to G20 on Implementation of Financial Reforms

    June 25, 2019

    FSB published the letter to G20 Leaders and the opening statement from an FSB briefing by the FSB Chair Randal K. Quarles. The letter, which the FSB Chair sent to G20 Leaders ahead of the Summit in Osaka on June 28-29, 2019, sets out progress by FSB over the past year in enhancing global financial stability and furthering the goals of G20. The key themes covered in the letter relate to the focus on new and emerging vulnerabilities, monitoring of risks resulting from financial innovation, and review of the implementation of regulatory reforms.

    The letter states that there has been remarkable progress in building a more resilient global financial system. However, promoting global financial stability is a continuous task that requires vigilance to the emerging risks. Annex to the letter contains status of implementation of reforms in priority areas by FSB jurisdictions (as of June 2019). The following are the key highlights of the letter:

    • Addressing new and emerging vulnerabilities—FSB will remain vigilant in identifying emerging risks, including increase in level of corporate and public debt. FSB is closely monitoring leveraged loan and collateralized loan obligation markets to obtain a fuller picture of the pattern of exposures to these assets globally.
    • Harnessing the benefits of financial innovation while containing risks—A deep and early understanding of how technological innovation may transform financial institutions and markets is the key to harness benefits while containing risks. One such example is crypto-assets. FSB and standard-setting bodies will monitor risks very closely and in a coordinated fashion, and consider additional multilateral responses as needed.
    • Completing implementation of the agreed reforms and ensuring that the reforms work as intended—FSB assessment highlights that, despite continued progress, implementation is not complete and remains uneven across reform areas. G20 Leaders’ continued support in implementing the agreed reforms is needed. Finalizing post-crisis reforms and monitoring their effective implementation remains a focus of FSB work.
    • Promoting an integrated global financial system—An open and resilient financial system, grounded in agreed international standards, is crucial to support sustainable growth. Introduction of the global Legal Entity Identifier (LEI) is a concrete step toward promoting integrated markets. 1.4 million entities are now identified by an LEI in more than 200 countries, though LEI still has far to go to meet the G20 objective of a truly global LEI adoption and FSB has published recommendations to deliver on this fundamental post-crisis reform.
    • Strengthening FSB’s outreach and accountability— Reaching out beyond its membership is key for FSB to achieve its mandate of promoting global financial stability. FSB is taking steps to improve communication and transparency, to facilitate wider input to its work, and to increase understanding of what it does.

    In 2019, FSB deliverables align with the G20 Presidency’s priorities and demonstrate their refocused mission, including increased attention to new vulnerabilities specifically in areas where technological innovations are playing an increasing role in financial services and are bringing new challenges to the global regulatory community. In conclusion of the letter, Mr. Quarles asked for G20 Leaders’ continued support, both to complete implementation of the agreed reforms and to cooperate to identify and, where identified, address new vulnerabilities.

     

    Related Links

    Keywords: International, Banking, Securities, Financial Stability, Accountability, Fintech, Regulatory Reforms, LEI, FSB

    Related Articles
    News

    APRA Revises Standard on Margin Rules for Uncleared Derivatives

    APRA revised CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.

    September 19, 2019 WebPage Regulatory News
    News

    SEC Adopts Rules and Amendments Under Regulatory Regime for Swaps

    SEC announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers (SBSDs) by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act.

    September 19, 2019 WebPage Regulatory News
    News

    PRA Issues Consultation on Prudent Person Principle Under Solvency II

    PRA, via the consultation paper CP22/19, has set out its proposed expectations for investment by firms, in accordance with the Prudent Person Principle (PPP).

    September 18, 2019 WebPage Regulatory News
    News

    PRA Proposal on Probability of Default and LGD Estimation

    PRA proposed, via the consultation paper CP21/19, an approach to implementing EBA’s recent regulatory products relating to Probability of Default (PD) estimation, Loss Given Default (LGD) estimation, and the treatment of defaulted exposures in the internal ratings-based (IRB) approach to credit risk.

    September 18, 2019 WebPage Regulatory News
    News

    BIS Formalizes Agreement to Set Up Innovation Hub in Hong Kong SAR

    BIS and HKMA signed the Operational Agreement on the BIS Innovation Hub Center in Hong Kong Special Administrative Region (SAR).

    September 18, 2019 WebPage Regulatory News
    News

    APRA Observations from Thematic Review on Recovery Plans of Insurers

    APRA issued a letter to general insurers and life insurers, outlining observations from a recent thematic review on recovery planning by insurers.

    September 18, 2019 WebPage Regulatory News
    News

    BNM Publishes Financial Stability Review for the First Half of 2019

    BNM published Financial Stability Review for the first half of 2019.

    September 18, 2019 WebPage Regulatory News
    News

    CFTC Extends Comment Period for Proposals on Cross-Border Clearing

    CFTC announced that it is extending, until November 18, 2019, the comment period for the proposal for an alternative compliance framework for derivatives clearing organizations (DCOs) that are organized outside of U.S. and that do not pose substantial risk to the U.S. financial system.

    September 18, 2019 WebPage Regulatory News
    News

    FASB Issues Summary of Tentative Board Decisions at September Meeting

    FASB published a summary of the tentative decisions taken at its Board meeting in September 2019.

    September 18, 2019 WebPage Regulatory News
    News

    EIOPA Forms Consultative Expert Group on Digital Ethics in Insurance

    EIOPA established the Consultative Expert Group on Digital Ethics in Insurance to assist EIOPA in the development of digital responsibility principles in insurance.

    September 17, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3848