Featured Product

    BCBS Met in September to Discuss Policy and Supervisory Issues

    September 20, 2018

    BCBS met in Basel on September 19-20, 2018 to discuss a range of policy and supervisory issues and to take stock of the implementation of post-crisis reforms by its members. At this meeting, the Basel Committee finalized stress-testing principles; reviewed ways to stop regulatory arbitrage behavior; agreed on annual G-SIB list; and discussed leverage ratio, crypto-assets, and market risk framework. The next meeting of the Basel Committee is scheduled for 26-27 November 2018 in Abu Dhabi. BCBS also issued responses to the Frequently Asked Questions (FAQs) related to the treatment of settled-to-market (STM) derivatives under the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).

    Key highlights of the outcomes of the meeting are as follows:

    • Next month, the Committee will publish a revised version of its Principles on Stress Testing, the consultation paper for which was published in December 2017.
    • The Committee approved the results of the annual assessment exercise for global systemically important banks (G-SIBs) and will be submitted the results to FSB, before it publishes the 2018 list of G-SIBs. The Committee also agreed to publish the high-level indicator values of all the banks that are part of the G-SIB assessment exercise.
    • The Committee expects to finalize the revisions to the market risk framework around the end of the year.
    • The Committee will publish a newsletter on leverage ratio window-dressing behavior, whereby banks adjust their balance sheets around regulatory reporting dates to influence reported leverage ratios. The Committee will consider Pillar 1 (minimum capital requirements) and Pillar 3 (disclosure) measures to prevent this behavior.
    • The Committee agreed to clarify the treatment of "settled-to-market" derivatives in the Committee's liquidity standards and published a response to frequently asked questions on this topic.
    • The Committee discussed the outcome of its review of the impact of the leverage ratio on client clearing. It also discussed an associated joint consultation paper by BCBS, FSB, CPMI, and IOSCO on the effects of post-crisis reforms on incentives to centrally clear over-the-counter (OTC) derivatives. The Committee agreed to publish a consultation paper next month to seek the views of stakeholders about whether the exposure measure should be revised and, if so, on targeted revision options.
    • The Committee exchanged views on banks' exposures to crypto-assets and the risks such assets may pose. The Committee agreed on further work on this topic that will inform its views on banks' crypto-asset exposures.
    • As part of the Regulatory Consistency Assessment Program, the Committee assessed Saudi Arabia's implementation of the Net Stable Funding Ratio and large exposures standard as "compliant"; the reports will be published soon.

     

    Related Links

    Keywords: International, Banking, Securities, Stress Testing, Regulatory Arbitrage, G-SIBs, Basel III, Crypto Assets, BCBS

    Featured Experts
    Related Articles
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458