FSB published a summary of the meeting of the Regional Consultative Group (RCG) in Europe. The meeting was held in Basel. The key topics of discussion included financial vulnerabilities, regulatory and supervisory issues associated with stablecoins, reform of major interest rate benchmarks, the ongoing work and plans of FSB for 2020, joint financial crisis management exercise, and effectiveness of RCGs as an outreach and feedback mechanism.
The following are the key highlights of the discussion:
- Members discussed global and regional financial vulnerabilities, along with the risks from elevated debt levels for many private- and public-sector borrowers in an environment where interest rates are expected to remain lower for longer globally.
- The group discussed the wide range of global regulatory and supervisory issues associated with stablecoins and is looking forward to the public consultation on regulatory issues of stablecoins, which FSB is expected to publish in April 2020.
- Also discussed were the findings of the progress report on reform of major interest rate benchmarks, which FSB will publish next month.
- Members received an update on the ongoing work and plans of FSB for 2020. As part of this update, RCG members also received an update on the ongoing evaluation of too-big-to-fail reforms for systemically important banks.
- The group discussed a joint financial crisis management exercise that had been conducted by Nordic and Baltic authorities in January 2019 to test their preparedness for a financial crisis. Members that participated in the simulation set out the lessons learned and actions they are taking to address issues highlighted by the exercise.
- The group expressed support for a set of recommendations developed by a working group of FSB and RCG members, and adopted by the FSB Plenary last week, to enhance the effectiveness of RCGs as an outreach and feedback mechanism.
Related Link: Press Release
Keywords: Europe, Banking, RCG, Stablecoin, Interest Rate Benchmark, Crisis Management Framework, FSB
Next ArticleElke König of SRB Outlines Priorities for 2020
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
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.
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.
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.
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.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
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.
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.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
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.