FSB Publishes Its Peer Review of Argentina
FSB published a peer review examining the macro-prudential policy framework and the framework for crisis management and resolution in Argentina. The review focused on the steps taken by the Argentine authorities to implement reforms in these areas, including by following up on relevant IMF-World Bank Financial Sector Assessment Program (FSAP) recommendations and FSB initiatives. Despite the progress made, the report includes recommendations to the Argentine authorities to address the identified issues and future challenges, as macroeconomic stability is restored and the financial system develops further.
The peer review finds that some progress has been made in recent years toward macro-prudential policy and crisis management frameworks. The Central Bank of the Republic of Argentina (BCRA) established, in 2016, a department within the Regulation Division for macro-prudential monitoring. Data used in risk analysis have been improved and efforts are ongoing to enhance the granularity of corporate sector data as well as to improve systemic risk analysis and enhance stress testing models. Commendable improvements recently in the quality of macroeconomic data have provided a solid platform for this analysis. The authorities have a broad range of banking sector tools at their disposal for macro-prudential purposes, including certain innovative tools introduced in response to the lessons from previous crises (for example, restrictions on banks’ lending in foreign currency). The authorities have also submitted to Congress a new Capital Markets Law that provides an explicit financial stability mandate to the National Securities Commission and a more robust framework for financial market infrastructures.
Some, albeit limited, progress has been made in developing the crisis management and resolution framework to address the FSAP recommendations and incorporate elements of the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions. Recovery planning is underway for most domestic systemically important banks (D-SIBs) and the resolution regime benefits from a well-funded deposit insurance fund. The draft Capital Markets Law includes a proposal to introduce powers to temporarily stay early termination rights.
Related Links
Keywords: Americas, Argentina, Banking, Securities, Peer Review, Macro-Prudential Policy, Resolution Framework, FSAP, FSB
Previous Article
BaFin Published the BaFin Journal for September 2017Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards