The Financial Stability Board (FSB) has been established to address vulnerabilities and to develop and implement strong regulatory, supervisory and other policies in the interest of financial stability.
What's New
|
FSB Regional Consultative Group for Europe holds its first meeting The FSB Regional Consultative Group for Europe held its inaugural meeting on 6 December in Luxembourg. The group is co-chaired by Tom Scholar, Second Permanent Secretary, HM Treasury, United Kingdom and Yves Mersch, Governor, Central Bank of Luxembourg and includes financial authorities from 22 jurisdictions in the region and the Group of International Finance Centre Supervisors. The press release issued following the meeting can be found here. Membership of the six FSB regional consultative groups can be found here. FSB Regional Consultative Group for Americas holds its first meeting The FSB Regional Consultative Group for the Americas held its inaugural meeting on 2 December in Mexico City. The group is co-chaired by Governor Agustín Carstens, Bank of Mexico and Governor José De Gregorio, Central Bank of Chile and includes 20 jurisdictions in the region. The press release issued following the meeting can be found here. Membership of the six FSB regional consultative groups can be found here. FSB Regional Consultative Group for Asia - Inaugural Meeting The FSB Asian Regional Consultative Group held its inaugural meeting on 21 November in Seoul. The press release following the meeting is here. The meeting is the first under the FSB's new initiative under which it has set up six regional groups comprising FSB member and non-member countries to exchange views on vulnerabilities affecting financial systems and on initiatives to promote financial stability. The membership of the groups can be found here. FSB announces its new Chairman and Vice-Chairman The FSB announced the appointment of Mark Carney as its new Chairman, succeeding Mario Draghi, and Philipp Hildebrand as Vice-Chairman, both as of 4 November. FSB announces policy measures to address systemically important financial institutions (SIFIs) and names initial group of global SIFIs At the Cannes Summit of 5 November, the G20 Leaders endorsed the implementation of an integrated set of policy measures to adress the risks to the global financial system from systemically important financial institutions (SIFIs) and the timeline for implementation of these measures. Specific measures focus on global SIFIs (G-SIFIs) to reflect the greater risks that these institutions pose to the global financial system. The FSB published the names of an initial group of 29 G-SIFIs, which will be updated annually. The policy measures are set out in the following documents: Key Attributes of Effective Resolution Regimes for Financial Institutions; Global Systemically Important Banks: BCBS Assessment Methodology and the Additional Loss Absorbency Requirement; and Intensity and Effectiveness of SIFI Supervision. FSB issues International Standard for Resolution Regimes On 4 November the FSB published the Key Attributes of Effective Resolution Regimes for Financial Institutions, a new international standard that sets out the responsibilities, instruments and powers that national resolution regimes should have to resolve a failing systemically important financial insitution (SIFI); it also sets out requirements for resolvability assessments and recovery and resolution planning for global SIFIs (G-SIFIs), as well as for the development of institution-specific cooperation agreements between home and host authorities. The Key Attributes are informed by responses to the FSB's public consultation of 19 July 2011 on Effective Resolutions of SIFIs, and the FSB has also published an overview of those responses. Strengthening the intensity and effectiveness of SIFI supervision - FSB reports on progress On 4 November the FSB released a report on progress in implementing the FSB's November 2010 Recommendations on Intensity and Effectiveness of SIFI Supervision. Stronger supervision of SIFIs is an essential element of the SIFI Framework. The report describes the progress many supervisors are making in intensifying their supervision of SIFIs and improving their supervisory tools and methods and sets out additional recommendations to help enhance supervision. FSB publishes overview report on the progress in the implementation of G20 recommendations This report details the further progress made in developing and implementing global financial regulatory reforms since the G20 Seoul Summit in November 2010, based on the detailed surveys conducted by the FSB Implementation Monitoring Network. FSB publishes "scoreboard" status report by the FSB Secretariat on the implementation of G20 recommendations This report developed by the FSB Secretariat in consultation with FSB members, in response to a request from the G20, provides a visual summary of the progress made in global policy development and implementation of financial regulatory reforms. FSB publishes recommendations to strengthen oversight and regulation of shadow banking The FSB published on 27 October Shadow Banking: Strengthening Oversight and Regulation. This report provides the FSB's recommendations on the subject as requested at the November 2010 G20 Summit. This report sets out practical recommendations, informed by a detailed monitoring exercise during summer 2011 to review recent trends and developments in the global shadow banking system, as well as a thorough regulatory mapping exercise to take stock of existing national and international initiatives. Five workstreams have been launched to assess the case for further regulatory action. Macroprudential policy tools and frameworks - Progress Report to G20 This report responds to the call of G20 Leaders on the FSB, IMF and BIS to do further work on macroprudential policy. It traces the progress in implementing macroprudential policy frameworks along three broad lines: (i) advances in the identification and monitoring of systemic financial risk; (ii) the designation and calibration of instruments for macroprudential purposes; and (iii) building institutional and governance arrangements in the domestic and regional context. The report's main message is that effective macroprudential frameworks require institutional arrangements and governance structures that, tailored to national circumstances, are able to mobilise the right tools to limit systemic risk as well as ensure a frank dialogue and resolve conflicts among policy makers' objectives. While recognising that no one size fits all, the report describes steps that have been taken, nationally and internationally, in developing macroprudential policy frameworks. The report also highlights the scope for further progress in the identification of systemic risk, the collection and analysis of data, in assessing the performance of newly introduced tools and in the establishment of institutional arrangements for the conduct of policy. FSB publishes report on consumer finance protection with particular focus on credit Drawing from the findings of an FSB stock-taking exercise on consumer finance protection, focusing on polices relating to consumer credit, this report presents internationally applicable lessons and identifies gaps where additional international work could help to advance consumer finance protection and financial stability. An annex contains principles for financial consumer protection, newly developed by the OECD with input from FSB members. FSB publishes consultation paper on principles for sound residential mortgage underwriting practices The consequences of weak mortgage underwriting practices in one country can be transferred globally via cross-border securitisation. Internationally agreed principles will help supervisors to more effectively monitor and detect the erosion of underwriting practices particularly when the housing market is booming. The FSB welcomes comments on the consultative document. Responses should be sent to fsb@bis.org by Friday 9 December 2011. FSB publishes report on financial stability issues in emerging market and developing economies The FSB, IMF and the World Bank published today a report on financial stability issues of particular interest to emerging market and developing economies (EMDEs). The report, which was prepared in response to a request by G20 Leaders at the November 2010 Seoul Summit, focuses on five key financial stability issues in EMDEs. It makes a number of recommendations on policy measures by national authorities in EMDEs to address these issues and on ways that the international community can support them in their efforts. FSB progress report on implementing OTC derivatives market reforms The FSB published on 11 October its second progress report on implementation of OTC derivatives market reforms. The report summarises progress made toward implementation of the G20 commitments concerning standardisation, central clearing, exchange or electronic platform trading, and reporting of OTC derivatives transactions to trade repositories. In particular it looks at progress against the 21 recommendations set out in the FSB's October 2010 report for implementing reforms in an internationally consistent and non-discriminatory way. The report concludes that juridictions should aggressively push forward to meet the G20 end-2012 deadline in as many reform areas as possible. FSB publishes follow-up peer review on compensation practices The FSB published on 11 October the follow-up peer review report on compensation practices, which assesses progress made both by national authorities and by significant financial institutions in implementing the FSB Principles for Sound Compensation Practices and their Implementation Standards. The report describes the findings of the peer review, including the key elements of the discussions in the FSB Standing Committee on Standards Implementation and Plenary, and contains recommendations to support advancement of the implementation of the FSB Principles and Standards by national authorities and firms. FSB Consultation Paper on a Common Template for Global Systemically Important Banks The FSB published a consultation paper on 6 October seeking views on a set of options and proposals to introduce a new common data template for global systemically important banks. The particular focus is to strengthen information on financial linkages between major banks and on their exposures and funding dependencies. The proposals are designed to meet recommendations 8 and 9 of the IMF/FSB report on 'The financial crisis and information gaps', which was endorsed by the G-20 in November 2009. Feedback is welcome from interested parties on the open issues and questions set out in the paper. Such feedback will be drawn on to deepen the cost-benefit analysis and to narrow down the current range of options in order to develop a final data template. Comments should be sent by 8 November to fsb@bis.org Responses will be published on the FSB's website unless respondents expressly request otherwise. FSB completes peer review of Australia The FSB published on 26 September the report on the peer review of Australia. This forms part of a regular programme of peer reviews of FSB member jurisdictions, which began with the publication of the peer review of Mexico last year and of Italy and Spain earlier this year. The objective of FSB country peer reviews is to examine the steps taken or planned by national authorities to address IMF-World Bank Financial Sector Assessment Program (FSAP) recommendations concerning financial regulation and supervision as well as institutional and market infrastructure. Unlike the FSAP, a peer review does not comprehensively analyse a jurisdiction's financial system structure or policies, nor does it provide an assessment of its conjunctural vulnerabilities or its compliance with international financial standards. The report published today describes the findings and conclusions of the Australia peer review, including the key elements of the discussion in the FSB Standing Committee on Standards Implementation. The draft report for discussion was prepared by a team of experts drawn from FSB member institutions. |