October 13, 2017

BIS published a presentation by Mr. Fernando Restoy, the Chairman of Financial Stability Institute (FSI) of BIS, at the CIV Meeting of Central Bank Governors of the Center for Latin American Monetary Studies (CEMLA) in Washington DC. The presentation provides an overview of the achievements to date of the post-crisis regulatory reforms and the ongoing work of the different standard-setting bodies.

The presentation highlights that the post-crisis financial reforms are well on the way to generating more resilient financial systems. Large banks are more liquid, hold more capital, and are more resolvable. Market transactions and infrastructures are safer (OTC derivatives/CCP reforms) and toxic forms of shadow banking have lost much relevance (new rules on consolidation, leverage, liquidity mismatches, etc.). Capital markets are more able to finance the real economy and credit is now growing in major economies, with the cost of financing remaining low. The presentation also highlights specific challenges for financial sector authorities, including the following:

  • Ex post impact assessment of regulatory reforms
  • The problem of non-performing loans in several jurisdictions
  • The application of proportionality in regulation
  • The emergence of fintech
  • The implementation of resolution reforms
  • Other priority areas such as cyber-risk, shadow banking, and correspondent banking

 

Related Link: Speech (PDF)

Keywords: International, Banking, Securities, PMI, Basel III, Resolution Framework, Regulatory Reforms, Proportionality, Fintech, Shadow Banking, BIS, FSI