Featured Product

    FSB Report Examines Progress in Implementation of Regulatory Reforms

    November 13, 2020

    FSB published the annual report that examines the implementation progress and the impact of G20 financial regulatory reforms across jurisdictions. The report includes an implementation dashboard that summarizes the status of implementation across FSB jurisdictions for priority reform areas. It also contains a table that shows the changes in implementation status by FSB jurisdiction across priority areas since September 2019. Overall, the report finds that the G20 reforms after the 2008 financial crisis have served the financial system well during the COVID-19 pandemic. Greater resilience of major banks at the core of the financial system, combined with the bold and decisive actions by authorities, has helped to sustain the supply of credit to the real economy and to maintain global financial stability. However, given the pandemic, there has been limited additional progress in implementing the G20 reforms during the last year.

    Acknowledging the extraordinary circumstances, FSB and the standard-setting bodies have extended implementation deadlines for certain international reforms to provide additional capacity for firms and authorities to respond to the COVID-19 shock. The report highlights that regulatory adoption of several core Basel III elements has generally been timely to date, although there have been delays in implementing other Basel III standards. Implementation of over-the-counter (OTC) derivatives reforms is also well-advanced. Furthermore, work is progressing to develop a global insurance capital standard. IAIS is developing a global risk-based Insurance Capital Standard (ICS) for internationally active insurance groups. In November 2019, the IAIS Executive Committee agreed on ICS version 2.0, which will be used for confidential reporting to supervisory colleges in a five-year monitoring period. However, substantial work remains to operationalize resolution plans for systemically important banks and to implement effective resolution regimes for insurers and central counterparties. Work is also ongoing at the international level to enhance central counterparty resilience, recovery, and resolution and to make trade reporting truly effective. The implementation of non-bank financial intermediation reforms continues but it is at an earlier stage than other reforms.

    The pandemic represents the first major global test of the post-crisis financial system and an opportunity to examine whether reforms have worked as intended. The pandemic not only provides an opportunity to assess the effectiveness of the reforms but also underscores the importance of global regulatory cooperation with G20 support. FSB and the standard-setting bodies will carry out further work to identify potential lessons learned for international standards. The question of whether the flexibility provided by authorities is actually used by financial institutions may require particular attention and will inform discussions of future policy adjustments, including on the eventual exit from temporary measures. The extraordinary central bank interventions and policy measures taken in response to the financial market turmoil in March, however, raise issues for further consideration including on their longer-term consequences. More work is needed to assess interconnections in the global financial system, the nature of vulnerabilities in non-bank financial intermediation in relation to the liquidity stress, and how central bank liquidity facilities have affected market conditions and market participant expectations. FSB and the standard-setting bodies will continue to promote approaches to deepen international cooperation, coordination, and information-sharing, underpinned by the FSB principles for the COVID-19 response, with the support of the G20.

     

    Related Links

    Keywords: International, Banking, Insurance, Securities, Basel, ICS Version 2, Derivatives, COVID-19, Financial Stability, G20, FSB

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514