Featured Product

    FSB Outlines and Reprioritizes Its Work to Address COVID-19 Risks

    April 02, 2020

    FSB published a statement that outlines its work toward addressing the financial stability risks posed by COVID-19, along with the reprioritization of its work program for 2020. Also published was a statement and press release from G20 leaders, in response to the COVID-19 crisis, along with a summary of the meeting of the FSB Regional Consultative Group (RCG) for the Middle East and North Africa (MENA). During the meeting, members discussed recent financial market developments, including the financial stability implications from COVID-19. Among other issues, the RCG discussed the FSB work to develop effective practices for cyber incident response and recovery. A preliminary set of practices has been drawn from survey responses by authorities, including those in the region. The summary statement highlighted that, in early 2020, FSB plans to launch a consultation on a toolkit for cyber incident response and recovery.

    The overall work of FSB on COVID-19 will involve regular information-sharing on evolving financial stability threats and on the policy measures that financial authorities are taking. FSB will also work toward assessing financial risks and vulnerabilities in the current environment and coordinating policy responses to maintain global financial stability. FSB members are cooperating closely to coordinate action, including financial policy responses in their jurisdictions, to maintain global financial stability, keep markets open and functioning, and preserve the capacity of the financial system to finance growth.

    The COVID-19 crisis called for a reprioritization of FSB work program, which takes into account several factors. These factors include whether the work is relevant to current crisis management, whether the evolution of the crisis may substantially change the findings, whether there are other important reasons to maintain the existing timing and/or scope of the project, and whether postponing or scaling back the work could relieve COVID-related additional resource pressures on FSB members and staff and on financial institutions and other stakeholders. FSB will focus on monitoring the current risks to global financial stability, particularly the impact of COVID-19 on the resilience of the financial system. The main elements of the reprioritization are as follows:

    • The prioritization will support timely discussion of policy issues arising from vulnerabilities in non-bank financial intermediation that are surfacing during the COVID-19 crisis, along with decisions on how to organize such work in FSB going forward.
    • Prioritization will ensure that key deliverables to the Saudi G20 Presidency will be provided and that FSB completes initiatives on topics that are likely to remain of policy relevance in the near term.
    • The three-stage work to develop a roadmap on cross-border payments, in coordination with CPMI, will continue as scheduled, given the importance of efficient cross-border payments systems.
    • Technical work on central counterparty resolution and the implementation of the Total Loss-Absorbing Capacity standard remains a priority.
    • With respect to the OTC derivatives reforms, finalizing the oversight arrangements for Unique Product Identifier (UPI) and Unique Transactions Identifier will continue, as the UPI service provider awaits clarity on the oversight arrangements.
    • The transition from London Inter-bank Offered Rate (LIBOR) remains a priority, as firms cannot rely on LIBOR being produced after end 2021. Benchmark transition will help to strengthen the global financial system.
    • Implementation monitoring will track regulatory relief measures taken by standard-setting bodies. Other work will be reduced to the completion of near-final projects and the production of a streamlined annual report to G20.


    Related Links

    Keywords: International, Middle East and Africa, MENA, Banking, COVID-19, RCG, Work Program, IBOR Reform, Resolution Framework, OTC Derivatives, NBFI, Cyber Risk, FSB

    Featured Experts
    Related Articles

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697