Monday, June 6, 2016

FSB’s Americas Group Concerned about Decline in Correspondent Banking Services

Author: David Schwartz J.D. CPA

On May 26 and 27, 2016, the Financial Stability Board (FSB) Regional Consultative Group (RCG) for the Americas convened in Montréal for a series of round tables covering the decline in correspondent banking services and issues relating to asset management activities. The RCG for the Americas is one of six Regional Consultative Groups established under the FSB Charter to provide a forum for FSB outreach to a wider range of countries in the region beyond the FSB membership on potential vulnerabilities affecting the region, on FSB initiatives, and on other measures that could be taken to promote financial stability. 

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Thursday, May 26, 2016

FSB Review Concludes that Taming of Shadow Banking is Far From Complete

Encourages Member States to Continue Their Efforts

Author: David Schwartz J.D. CPA

According to a peer review published the by Financial Stability Board (FSB) on May 25, 2016, regulation of shadow banking remains at an early stage, and much progress remains to be made. According to the report, notwithstanding the progress made, “more work is needed to ensure that jurisdictions can comprehensively assess and respond to potential shadow banking risks posed by non-bank financial entities, and support FSB risk assessments and policy discussion.”

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Friday, November 20, 2015

FSB Finalizes Standards and Processes for Global Securities Financing Data Collection and Aggregation

Author: Member Admin

On November 18, 2015, the Financial Stability Board (FSB) published its final Standards and Processes for Global Securities Financing Data Collection and Aggregation. The final standards are based on the FSB’s previous November 2014 consultation paper and define the data elements for securities lending, repo, and margin lending that national and regional authorities will be asked to report in aggregate to the FSB.

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Monday, August 10, 2015

Summer 2015 Financial Regulatory Update

Author: David Schwartz J.D. CPA

The Fed, Financial Stability Board, and the Bank for International Settlements have beein quite busy this summer, and each issued rules or consultations in July furthering Basel III initiatives. On July 1, the Basel Committee issued a consultative document on its review of the credit valuation adjustment risk framework; on July 2, the FSB launched a peer review on the implementation of its policy framework for financial stability risks posed by non-bank financial entities other than money market funds (i.e., shadow banks"); and on July 20, the Fed finalized its capital surcharge rule for the eight US global systemically important banks (G-SIBs).

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Thursday, March 12, 2015

Latest FSB Global SIFI Consultation Draws Swift Criticism

Author: David Schwartz J.D. CPA
Though the Financial Stability Board’s March 4, 2015 consultation paper on Global SIFI designation is only a week old, it has already generated a chorus of criticism and condemnation from some of the asset management industry’s most powerful players. This second public consultation proposes revised methodologies for identifying non-bank non-insurer global systemically important financial institutions (NBNI G-SIFIs) based on comments received on the first consultative paper published in January 2014. The consultation proposes a general framework applicable to NBNI G-SIFIs, as well as a specific framework that would be applied based on the type of entity, including separate frameworks for asset managers and investment funds. Despite a multitude of comments on the January 2014 proposal, however, the identification methodology proposed is once again based on size, complexity, and systemic interconnectedness of particular entities, and assessments as to how those factors could cause significant disruption to the wider financial system and economic activity at the global level. This focus on size and complexity has prompted the some of the asset management industry’s most influential groups to issue statements decrying the FSB’s apparent failure to heed their advice. No doubt these scathing criticisms of the Global SIFI proposal will be reiterated, expanded, and elucidated further in each of the group’s forthcoming comment letters.
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