Featured Product

    FSB Chair Reports to G20 on Implementation of Financial Reforms

    June 25, 2019

    FSB published the letter to G20 Leaders and the opening statement from an FSB briefing by the FSB Chair Randal K. Quarles. The letter, which the FSB Chair sent to G20 Leaders ahead of the Summit in Osaka on June 28-29, 2019, sets out progress by FSB over the past year in enhancing global financial stability and furthering the goals of G20. The key themes covered in the letter relate to the focus on new and emerging vulnerabilities, monitoring of risks resulting from financial innovation, and review of the implementation of regulatory reforms.

    The letter states that there has been remarkable progress in building a more resilient global financial system. However, promoting global financial stability is a continuous task that requires vigilance to the emerging risks. Annex to the letter contains status of implementation of reforms in priority areas by FSB jurisdictions (as of June 2019). The following are the key highlights of the letter:

    • Addressing new and emerging vulnerabilities—FSB will remain vigilant in identifying emerging risks, including increase in level of corporate and public debt. FSB is closely monitoring leveraged loan and collateralized loan obligation markets to obtain a fuller picture of the pattern of exposures to these assets globally.
    • Harnessing the benefits of financial innovation while containing risks—A deep and early understanding of how technological innovation may transform financial institutions and markets is the key to harness benefits while containing risks. One such example is crypto-assets. FSB and standard-setting bodies will monitor risks very closely and in a coordinated fashion, and consider additional multilateral responses as needed.
    • Completing implementation of the agreed reforms and ensuring that the reforms work as intended—FSB assessment highlights that, despite continued progress, implementation is not complete and remains uneven across reform areas. G20 Leaders’ continued support in implementing the agreed reforms is needed. Finalizing post-crisis reforms and monitoring their effective implementation remains a focus of FSB work.
    • Promoting an integrated global financial system—An open and resilient financial system, grounded in agreed international standards, is crucial to support sustainable growth. Introduction of the global Legal Entity Identifier (LEI) is a concrete step toward promoting integrated markets. 1.4 million entities are now identified by an LEI in more than 200 countries, though LEI still has far to go to meet the G20 objective of a truly global LEI adoption and FSB has published recommendations to deliver on this fundamental post-crisis reform.
    • Strengthening FSB’s outreach and accountability— Reaching out beyond its membership is key for FSB to achieve its mandate of promoting global financial stability. FSB is taking steps to improve communication and transparency, to facilitate wider input to its work, and to increase understanding of what it does.

    In 2019, FSB deliverables align with the G20 Presidency’s priorities and demonstrate their refocused mission, including increased attention to new vulnerabilities specifically in areas where technological innovations are playing an increasing role in financial services and are bringing new challenges to the global regulatory community. In conclusion of the letter, Mr. Quarles asked for G20 Leaders’ continued support, both to complete implementation of the agreed reforms and to cooperate to identify and, where identified, address new vulnerabilities.

     

    Related Links

    Keywords: International, Banking, Securities, Financial Stability, Accountability, Fintech, Regulatory Reforms, LEI, FSB

    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958