FSB published a summary of the meeting of the Regional Consultative Group (RCG) in Americas. The meeting was hosted by the Bank of Mexico. The key topics of discussion at the meeting included the ongoing work of FSB and its plans for 2020, work of the RCG working group on non-bank financial intermediation and on the implications of stablecoins for financial stability, effective practices for cyber-incident response and recovery, and enhancement of the way that the RCGs provide feedback to FSB.
The following are the key highlights of the discussion:
- The group received an update on the ongoing work of FSB and its plans for 2020. This included evaluation of the effects of the implemented post-crisis regulatory reforms. The FSB work on interest-rate benchmark reforms was also discussed, with the group agreeing on the importance of sustained effort by firms in many jurisdictions to transition away from LIBOR.
- The members discussed work by the RCG working group on non-bank financial intermediation; the working group compiles annual data on the size of the financial intermediation activity in the region and examines the associated policy issues.
- Members discussed stablecoins and their implications for financial stability, agreeing that stablecoin projects—particularly those of potentially global reach and magnitude—need to meet the highest regulatory standards and be subject to appropriate prudential supervision and oversight.
- The group discussed the ongoing work of FSB to develop effective practices for cyber-incident response and recovery, on which the FSB will consult in early 2020.
- The group also expressed support for a set of recommendations that have been developed by a working group of FSB and RCG members for enhancing the effectiveness of RCGs as an outreach and feedback mechanism. The recommendations will be reviewed by the FSB Plenary for adoption in November.
- The members discussed global and regional financial vulnerabilities, including elevated debt levels for many private- and public-sector borrowers in advanced economies. The group stressed the importance of authorities designing integrated policy responses.
The RCG for Americas is co-chaired by Alejandro Díaz de León-Carrillo, the Governor of Bank of Mexico, and Cindy Scotland, the Managing Director of Cayman Islands Monetary Authority. The members of RCG for Americas include financial authorities from Argentina, Bahamas, Barbados, Bermuda, Bolivia, Brazil, British Virgin Islands, Canada, Cayman Islands, Chile, Colombia, Costa Rica, Guatemala, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Trinidad and Tobago, the United States of America, and Uruguay.
Related Link: Meeting Update
Keywords: International, Americas, Banking, RCG, NBFI, Stablecoin, Financial Stability, Regtech, Cyber Risk, Interest Rate Benchmarks, FSB
Previous ArticleUS Agencies Finalize Rules to Closely Match Bank Risk Profiles
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
PRA published a public working draft, or PWD, of version 1.2.0 of the BoE Insurance XBRL taxonomy, along with the related technical artefacts.
CPMI published a report that sets out nineteen building blocks for a global roadmap to improve cross-border payments.
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.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
ESMA published the final report on the guidelines on securitization repository data completeness and consistency thresholds.
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).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.