FSB published a summary of the meeting of the Regional Consultative Group (RCG) in Americas. The meeting was hosted by the Bank of Mexico. The key topics of discussion at the meeting included the ongoing work of FSB and its plans for 2020, work of the RCG working group on non-bank financial intermediation and on the implications of stablecoins for financial stability, effective practices for cyber-incident response and recovery, and enhancement of the way that the RCGs provide feedback to FSB.
The following are the key highlights of the discussion:
- The group received an update on the ongoing work of FSB and its plans for 2020. This included evaluation of the effects of the implemented post-crisis regulatory reforms. The FSB work on interest-rate benchmark reforms was also discussed, with the group agreeing on the importance of sustained effort by firms in many jurisdictions to transition away from LIBOR.
- The members discussed work by the RCG working group on non-bank financial intermediation; the working group compiles annual data on the size of the financial intermediation activity in the region and examines the associated policy issues.
- Members discussed stablecoins and their implications for financial stability, agreeing that stablecoin projects—particularly those of potentially global reach and magnitude—need to meet the highest regulatory standards and be subject to appropriate prudential supervision and oversight.
- The group discussed the ongoing work of FSB to develop effective practices for cyber-incident response and recovery, on which the FSB will consult in early 2020.
- The group also expressed support for a set of recommendations that have been developed by a working group of FSB and RCG members for enhancing the effectiveness of RCGs as an outreach and feedback mechanism. The recommendations will be reviewed by the FSB Plenary for adoption in November.
- The members discussed global and regional financial vulnerabilities, including elevated debt levels for many private- and public-sector borrowers in advanced economies. The group stressed the importance of authorities designing integrated policy responses.
The RCG for Americas is co-chaired by Alejandro Díaz de León-Carrillo, the Governor of Bank of Mexico, and Cindy Scotland, the Managing Director of Cayman Islands Monetary Authority. The members of RCG for Americas include financial authorities from Argentina, Bahamas, Barbados, Bermuda, Bolivia, Brazil, British Virgin Islands, Canada, Cayman Islands, Chile, Colombia, Costa Rica, Guatemala, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Trinidad and Tobago, the United States of America, and Uruguay.
Related Link: Meeting Update
Keywords: International, Americas, Banking, RCG, NBFI, Stablecoin, Financial Stability, Regtech, Cyber Risk, Interest Rate Benchmarks, FSB
Previous ArticleUS Agencies Finalize Rules to Closely Match Bank Risk Profiles
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.