FSB published a summary of the Plenary meeting in Paris. At the meeting, the Plenary reviewed vulnerabilities in the global financial system, fintech developments (including developments in the crypto-asset markets), ongoing work of FSB, and the work program for 2020. The timelines for the publication of certain reports related to the ongoing FSB work were also announced.
The following are the key highlights and conclusions of the meeting:
- FSB plans to publish, by the end of the year, a report that assesses vulnerabilities associated with leveraged loans and collateralized loan obligations (CLOs).
- Members reviewed progress on the development of a new surveillance framework and discussed the key parameters of the new framework, which FSB plans to complete in mid-2020.
- FSB will publish a consultative report on regulatory issues of stablecoins in April 2020.
- Members discussed the ongoing work on market developments and potential financial stability implications from the entry of bigtech firms into finance and from third-party dependencies in cloud services. FSB will publish initial reports on these key topics in the coming weeks.
- The Plenary welcomed the completion of the final version of the holistic framework for assessment and mitigation of systemic risk in the insurance sector, which IAIS will publish next week, following an earlier stakeholder consultation.
- FSB work program for 2020 will be published toward the end of 2019 and the priorities of the work program include addressing new and emerging vulnerabilities in the financial system, harnessing the benefits of financial innovation while containing risks, finalizing and operationalizing post-crisis reforms, and monitoring the implementation and evaluating the effects of the reforms.
Related Link: Press Release
Keywords: International, Banking, Insurance, Fintech, Collateralized Loan Obligations, Financial Stability, Systemic Risk, Work Program, IAIS, FSB
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Next ArticleUS Agencies Propose to Amend Swap Margin Rule
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.