Featured Product

    FSB Sets Out New Financial Stability Surveillance Framework

    September 30, 2021

    The Financial Stability Board (FSB) published the new financial stability surveillance framework to support the comprehensive, methodical, and disciplined review of vulnerabilities by FSB. The framework will help to identify and address new and emerging risks to financial stability. The framework provides a global, cross-border, and cross-sectoral perspective on the existing vulnerabilities and draws on the collective perspective of the the broad membership of FSB. It also emphasizes on incorporating multiple perspectives in the assessment of both current and emerging vulnerabilities.

    The framework includes a common terminology and taxonomy—which defines key concepts such as vulnerabilities, shocks, and resilience—that will aid shared understanding and consensus building among FSB members. The framework embodies four key principles:

    • Focus on vulnerabilities that may have implications for global financial stability. The focus of the framework is to identify vulnerabilities that may have adverse implications for the global financial system and thus for economies. This means that the aim is to identify vulnerabilities that are common to a number of jurisdictions or have the potential to engender material cross-border spillovers.
    • Scan vulnerabilities systematically and with a forward-looking perspective, while preserving flexibility. The framework aims to engender a systematic, disciplined review of vulnerabilities. It includes a set of procedures for each vulnerability assessment that helps ensure a comprehensive review of the global financial system. At the same time, the framework promotes a forward-looking approach by clarifying the time horizons over which vulnerabilities might become more material. The framework distinguishes between global vulnerabilities that are already material, those that may become material in the next 2 to 3 years, and those that may become material over a longer horizon.
    • Recognize differences among countries. The framework recognizes key ways in which countries’ financial systems, macroeconomic policy frameworks, and institutional structures differ and the implications this may have for the relative importance of vulnerabilities.
    • Leverage comparative advantages of FSB while avoiding duplication of work. Many FSB members carry out and publish financial stability assessments. The vulnerability assessments of FSB build on this work, with a focus on issues that are most relevant for global financial stability. In doing so, the assessments aim to reflect the collective views of FSB members on vulnerabilities as well as to leverage the specific expertise and different perspectives of its member institutions.

    Once identified, material global vulnerabilities will be subject to more intensive monitoring and analysis and, as appropriate, policy dialog among FSB committees. In addition, FSB will communicate its view on vulnerabilities through its annual reports and other formats.

     

    Related Links

    Keywords: International, Banking, Insurance, Securities, Financial Stability, Financial Stability Surveillance Framework, Vulnerability Assessments, Cross-Border Cooperation, FSB

    Related Articles
    News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News
    News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News
    News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News
    News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News
    News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    News

    DNB Publishes Multiple Reporting Updates for Banks

    DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.

    February 28, 2023 WebPage Regulatory News
    News

    NBB Sets Out Climate Risk Expectations, Issues Reporting Updates

    The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting

    February 24, 2023 WebPage Regulatory News
    News

    EBA Updates Address Securitization Standards and DGS Guidelines

    The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.

    February 21, 2023 WebPage Regulatory News
    News

    FSB Publishes Letter to G20, Sets Out Work Priorities for 2023

    The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023

    February 20, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8793