FSB published a summary of the meeting of its Regional Consultative Group (RCG) in Americas. The key topics of discussion included deliverables for the June G20 meeting in Japan, work to be done by the RCG’s working group on non-bank financial intermediation (NBFI), decline in correspondent banking relationships, feedback on the FSB consultation on the evaluation of regulatory reforms, and enhancement of the way that the RCGs provide feedback to FSB. The FSB Chair Randal K. Quarles also joined this meeting, which took place in Buenos Aires.
The following are the key highlights of the discussion:
- The group received an update on the FSB work program and the deliverables for the June G20 meetings in Japan. The FSB work program for 2019 is focused on new and emerging vulnerabilities and how they may be addressed.
- They received an update on the RCG’s working group on non-bank financial intermediation (NBFI), discussed the outcomes of the last meeting of the working group (held on March 19, 2019), and the future work to be undertaken by the working group.
- The RCG group also discussed global and regional financial market developments and vulnerabilities, their potential impact on the economies in the region, and possible policy responses. The group was briefed on the recent FSB assessment of global vulnerabilities, which stem from loosening in lending standards, elevated asset values, and high private and public debt.
- The members further discussed the ongoing work on market fragmentation. They discussed the draft report on potential issues around market fragmentation and approaches to address these issues.
- The group then discussed progress in implementation of the FSB-coordinated action plan to assess and address the decline in correspondent banking relationships and follow-up to the associated recommendations to address remittance service providers’ access to banking services. They emphasized the importance of this issue for many countries in the region.
- They provided feedback on the FSB’s draft consultation report on its evaluation of the effects of the post-crisis financial regulatory reforms on financing for small and medium-size enterprises (SMEs), which will be published in the coming weeks.
- Finally, the meeting provided an opportunity for the FSB Chair Quarles to hear suggestions from members on how to enhance the ways that the RCGs provide feedback to FSB.
Related Link: Meeting Update
Keywords: International, Americas, Banking, NBFI, Financial Stability, RCG, Regulatory Reform, FSB
Previous ArticleESRB Paper on Impact of Business Model Similarities on Risk Capture
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
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.
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
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.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
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.
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.