Financial Stability Board

Three recent publications suggest that the loose path of regulation for hedge fund risk may be coming to a close. One in particular has some sharp teeth; we may see…

“Transparency and accountability”: will Fed Governor Randal Quarles’ proposals lead to efficiency or a lack of supervision? (Premium)

January 21, 2020

Federal Reserve, Regulatory

Federal Reserve, Financial Stability Board, Randal Quarles, Regulation, topstory

As Fed Vice Chair for Financial Supervision and Chair of the Financial Stability Board (FSB), Randal Quarles leads part of the global conversation about regulation or deregulation of banks. His…

The future of global regulatory agencies in an era of fragmentation

October 31, 2019

Basel III, Financial Stability Board, IOSCO, Regulatory

Basel Committee, BCBS, Financial Stability Board, FSB, IOSCO, topstory

The Basel Committee on Banking Supervision (BCBS) is not a regulator – it is set up to produce frameworks that individual jurisdictions then adopt – but even so, its directives…

FSB publishes peer review of implementation of the Legal Entity Identifier

May 28, 2019

Financial Stability Board, FSB, Legal Entity Identifier, LEI

The Financial Stability Board (FSB) published today a Thematic Review on Implementation of the Legal Entity Identifier (LEI). The LEI is a 20-character, alpha-numeric code that was introduced following the…

FSB asks ISDA to help clarify what happens if LIBOR is discontinued

March 15, 2019

Financial Stability Board, FSB, ISDA, LIBOR

FSB letter to ISDA about derivative contract robustness to risks of interest rate benchmark discontinuation This letter from the Co-chairs of the FSB’s Official Sector Steering Group (OSSG) encourages the…

FSB work plan for 2019 focuses on wrapping up loose ends

February 12, 2019

FSB work programme for 2019 This work programme details the FSB’s planned work and an indicative timetable of main publications for 2019. It reflects the FSB’s continued pivot from policy…

COP24 advances ESG commitments for EU banks and regulators

December 7, 2018

Anna Reitman

Big Data, Technology

COP24, ESG, ethical investment, Financial Stability Board, PRMIA, regulatory reporting, TCFD

In tackling climate change as a long-term risk, EU finance ministers are advancing European Banking Authority studies on mandatory ESG (Environmental, Social, Governance) disclosures for banks in three years and…

FSB consults on whether existing financial resources are enough for CCP resolution

November 15, 2018

CCPs, Financial Stability Board, FSB

Financial resources to support CCP resolution and the treatment of CCP equity in resolution Available as: PDF 15 November 2018 This discussion paper seeks comment on financial resources to support…

FSB finds that jurisdictions have undertaken substantial reforms to mitigate “too-big-to-fail”

November 15, 2018

Financial Stability Board, too big to fail

FSB 2018 Resolution Report: “Keeping the pressure up“ Available as: PDF 15 November 2018 This report updates on progress in implementing the framework and policy measures to enhance the resolvability…

The FSB pushes hard on making trade reporting operational and legal (Premium)

July 10, 2017

Richard Stinchfield

Derivatives, EMIR, Financial Stability Board, Market infrastructure, OTC Derivatives Clearing, Regulatory, Systemic Risk

Financial Stability Board, legal data, OTC derivatives, Regulatory reform, topstory, trade reporting

The Financial Stability Board (FSB) has been busy, with 10 substantive letters and reports released in the run up to the recent G20 summit. For this article, we took a look…

FSB report highlights ops, cyber and macrofinancial risks of FinTech

June 27, 2017

Financial Stability Board, fintech, FSB

Financial Stability Board Financial Stability Implications from FinTech The FSB has been analysing the potential financial stability implications from FinTech with a view to identifying supervisory and regulatory issues that…

FSB releases consultation on the use of compensation tools to address misconduct

June 21, 2017

Conduct, Financial Stability Board, FSB, misconduct

The Financial Stability Board (FSB) today published for public consultation draft Supplementary Guidance to the FSB Principles and Standards on Sound Compensation Practices regarding the use of compensation tools to address misconduct.…

FSB report: Rapid growth in FinTech credit carries opportunities and risks

May 23, 2017

credit, Financial Stability Board, fintech, FSB

FinTech platforms account for an increasing share of credit provision and policymakers have to consider the opportunities and risks such activity brings, a new report by the Committee on the…

FSB says Shadow Banking was a $34 trillion industry in 2015

May 10, 2017

Financial Stability Board, FSB, Shadow Banking

The Financial Stability Board (FSB) today published the Global Shadow Banking Monitoring Report 2016. The report presents the results of the FSB’s sixth annual monitoring exercise to assess global trends and…

FSB Chair sets out need for full implementation of agreed reforms and the FSB’s priorities for the G20 German Presidency

March 17, 2017

The Financial Stability Board (FSB) today published a letter from Mark Carney, Chair of the FSB, sent to G20 Finance Ministers and Central Bank Governors ahead of their meeting in…

Has the Financial Stability Board lost its bite in derivatives and securities finance? (Premium)

March 2, 2017

Basel III, Derivatives, Financial Stability Board, Repo, Securities Lending

derivatives, Financial Stability Board, FSB, securities finance, topstory

With the latest Financial Stability Board (FSB) announcement, we are left wondering if the recommendations from this once influential institution will be a lot less impactful than they used to…

How worried should we be about re-hypothecation? Notes on the FSB’s recent report and recommendations

January 30, 2017

Richard Stinchfield

Basel III, Collateral Management, Financial Stability Board, Market infrastructure, Re-Hypothecation, Regulatory, Securities Lending, Systemic Risk

Financial Stability Board, Lehman, Rehypothecation, Securities Lending, topstory

The subject of re-hypothecation of customer assets by banks and brokers has always been an uncomfortable one. While professionals and regulators have long understood that re-hypothecation is essential to financing…

FSB consults on proposed guidance to support resolution planning and promote resolvability

December 16, 2016

Financial Market Infrastructure, Financial Stability Board, FSB, TLAC

The Financial Stability Board (FSB) has today issued for consultation two proposals for guidance on the implementation of its resolution standards which form part of the overall policy framework to…

Bank of England suggests that revisiting repo capital rules would be a good idea

December 1, 2016

Bank of England, Basel III, Regulatory, Repo

Bank of England, Financial Stability Board, Financial Stability Report, Repo, topstory

The Bank of England Financial Stability Report released yesterday was closely watched for its implications of how the UK is responding to the Brexit vote. Buried deep in the pages…

Financial Stability Board agrees 2017 workplan

November 17, 2016

The Financial Stability Board (FSB) met in London today to discuss current vulnerabilities, ongoing policy work and its workplan for 2017. Current market developments and vulnerabilities The financial system has…

The value of data: Shadow Banking, repo and lending to SMEs (Premium)

September 6, 2016

Big Data, Financial Stability Board, Investments, Money Market Funds, Repo

Financial Stability Board, Repo, Shadow Banking, topstory

Several stories and reports emerged in the last few days that highlight the value of Shadow Banking and securities finance data in the marketplace. While data is always useful, new sources make…

FSB publishes discussion note on Essential Aspects of CCP Resolution Planning and progress report on CCP workplan

August 16, 2016

CCPs, Financial Stability Board, FSB

The Financial Stability Board (FSB) is publishing today its discussion note on Essential Aspects of CCP Resolution Planning, which seeks comment on aspects of central counterparty (CCP) resolution that are considered…

The FSB tackles asset managers offering indemnification as securities lending agents

June 27, 2016

Financial Stability Board, Investments, Securities Lending

asset managers, Financial Stability Board, FSB, Securities Lending, topstory

In their recent consultative document, “Proposed Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities,” the Financial Stability Board included a section on securities lending. The big concern is…

The FSB, shadow banking risks and expanding the regulatory perimeter: will it work? (Premium)

May 26, 2016

Financial Stability Board, Regulatory, Risk Management, Shadow Banking

Financial Stability Board, risk, Shadow Banking, topstory

The Financial Stability Board (FSB) published a new thematic review yesterday of their progress in Shadow Banking regulation. The first “Principle” of the document is to define and update the…

FSB Chair sets out to the G20 the FSB work programme for 2016

February 28, 2016

The more difficult economic and financial conditions since the start of this year reflect in part downward revisions to the expected medium-term growth prospects of the world economy as a…

The FSB looks at measuring collateral re-use: we post the important parts

February 23, 2016

Collateral Management, Regulatory

collateral management, collateral velocity, Financial Stability Board, FSB, re-use, Rehypothecation, topstory

The Financial Stability Board released today a preview of an upcoming document on collateral use. The current document, “Transforming Shadow Banking into Resilient Market-based Finance: Possible Measures of Non-Cash Collateral…

The CCP skin in the game debate continues: sources say it isn't helpful (Premium)

January 14, 2016

Anna Reitman

CCP, Financial Stability Board, Regulatory

CCPs, Financial Stability Board, recovery, Resolution, skin in the game, topstory

Banks and buy side firms have been calling for an increase to the slice of the risk waterfall stumped up by CCPs. They reckon this would make CCPs more resilient,…

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

November 19, 2015

Download the report here Securities financing transactions such as securities lending and repurchase agreements (repos) play a crucial role in supporting price discovery and secondary market liquidity for a wide…

FSB issues final Total Loss-Absorbing Capacity standard for global systemically important banks

November 9, 2015

Financial Stability Board, TLAC

The Financial Stability Board (FSB) today issued the final Total Loss-Absorbing Capacity (TLAC) standard for global systemically important banks (G-SIBs). The TLAC standard has been designed so that failing G-SIBs…

FSB reports describe progress in implementing OTC derivatives market reforms, and highlight where further work is needed

November 5, 2015

4 November 2015 The Financial Stability Board (FSB) released two reports today on implementation of the reforms to over-the-counter (OTC) derivatives market agreed by the G20.1 The Thematic Peer Review of…

FSB publishes new measures to promote resolvability, including effective cross-border resolution

November 5, 2015

3 November 2015 The Financial Stability Board (FSB) today released two finalised guidance papers and three consultative documents as part of its policy agenda to end “too-big-to-fail” and promote the…

FSB designates G-SIBs and G-SIIs for 2015

November 5, 2015

G-SIBs as of November 20158 allocated to buckets corresponding to required level of additional loss absorbency Bucket G-SIBs in alphabetical order within each bucket 5 (3.5%) (Empty) 4 (2.5%) HSBC…

The FSB takes on fund leverage and liquidity

September 29, 2015

Jonathan Cooper

Financial Stability Board, Fixed Income, Investments, Liquidity Management, Risk Management, SEC, Securities Lending, Shadow Banking

Financial Stability Board, FSB, fund management, Leverage, Liquidity, Securities Lending, Shadow Banking, topstory

The Financial Stability Board (FSB) issued a press release outlining what they discussed at their Sept. 25th meeting in London. Leverage and liquidity is still on their mind. Securities lending…

The Financial Stability Board (FSB) on progress with OTC Derivatives Trade Repositories

July 30, 2015

Jonathan Cooper

Big Data, Regulatory, Total Return Swaps, Trade Repositories

Financial Stability Board, FSB, OTC derivatives, topstory

The Financial Stability Board (FSB) published “OTC Derivatives Market Reforms, Ninth Progress Report on Implementation” on July 24th. We take a look at what they had to say about trade…

FSB: Progress in Implementing OTC Derivatives Market Reforms

July 24, 2015

The Financial Stability Board (FSB) published today its ninth progress report on implementation of OTC derivatives market reforms. G20 Leaders agreed in 2009 to a comprehensive reform agenda for these…

FSB publishes interim report on interest rate benchmark reform

July 9, 2015

FSB publishes an interim report on Progress in Reforming Major Interest Rate Benchmarks Available as: PDF 9 July 2015 Press enquiries: +41 61 280 8055 press@bis.org Ref no: 39/2015 The…

Market responses to FSB and IOSCO consultation on non-bank SIFI designations

June 16, 2015

Financial Stability Board, Investments, IOSCO, Regulatory

asset managers, Financial Stability Board, FSB, IOSCO, NBNI G-SIFI, SIFIs, topstory

The Financial Stability Board (FSB) released comment letters last week on the FSB and IOSCO consultative paper, “Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions.” These institutions…

FSB releases Chair’s Letter to G20 on financial reforms

April 17, 2015

This letter from the FSB chair to G20 Finance Ministers and Central Bank Governors ahead of their meeting in Washington in April 2015 provides an update on progress at last…

Clarifying the WSJ article on seclending and repo term changes (Premium Content)

April 15, 2015

Financial Stability Board, Regulatory, Repo, Securities Lending, Systemic Risk

automatic stays, Financial Stability Board, FSB, OLA, Orderly Liquidation Authority, Repo, Securities Lending, topstory, WSJ

The Wall Street Journal released an article yesterday, “Regulators Call for Short-Term Loan Changes to Handle ‘Too-Big-to-Fail’“, that may have seemed alarmist. It’s not. Here’s what’s going on. Continue reading

FSB launches second peer review on resolution regimes and invites feedback from stakeholders

April 13, 2015

Financial Stability Board, Repo, Securities Lending, Trade Repositories

The Financial Stability Board (FSB) has launched the second review of resolution regimes in FSB member jurisdictions. The objective of the review is to examine the range and nature of…

Monday regulatory roundup: asset managers as SIFIs; CCP stress tests; two from the Bank of England (Premium Content)

While some spent the winter hiding under the covers trying to keep warm, regulators clearly had a busy and productive season. This regulatory roundup provides highlights of new and revisited…

Highlights from comment letters: the FSB’s proposal on Trade Repositories in securities finance (Premium Content)

March 5, 2015

Christopher Sappo

comment letters, Financial Stability Board, securities financing transactions, topstory, Trade repositories

The Financial Stability Board has released comment letters on its November 2014 document, “Proposed Standards and Processes for Global Securities Financing Data Collection and Aggregation.” Less technically, this is on…

FSB releases public responses to the November 2014 Proposed Standards and Processes for Global Securities Financing Data Collection and Aggregation

February 26, 2015

Financial Stability Board, FSB, Trade repositories

On 13 November 2014, the FSB published a consultative document on the Standards and Processes for Global Securities Financing Data Collection and Aggregation. The FSB indicated that it would welcome…

The FSB’s annual report: how much money is spent on regulation?

February 3, 2015

Financial Stability Board, Regulatory

annual report, Financial Stability Board, FSB, topstory

The Financial Stability Board published their first annual report for the January 2013 to March 2014 period, making the whole thing pretty dated. The contents read like a hit parade…

The FSB on securities finance data collection and aggregation: a good start but there are some tough points to resolve

November 17, 2014

Collateral Management, Financial Stability Board, Regulatory, Repo, Securities Lending

collateral management, Data, Financial Stability Board, Repo, Securities Lending, topstory

The Financial Stability Board has released a consultative document, “Standards and Processes for Global Securities Financing Data Collection and Aggregation.” Most of this is no surprise and the actual data…

FSB consults on proposal for a common international standard on Total Loss-Absorbing Capacity (TLAC) for global systemic banks

November 10, 2014

The Financial Stability Board (FSB) has today issued for public consultation policy proposals consisting of a set of principles and a detailed term sheet on the adequacy of loss-absorbing and…

FSB publishes its eighth progress report on implementation of OTC derivatives market reforms

November 7, 2014

The Financial Stability Board (FSB) published today its eighth progress report on implementation of OTC derivatives market reforms. G20 Leaders agreed in 2009 to a comprehensive reform agenda for these markets, to…

FSB publishes annual G-SIFI and G-SII lists

November 6, 2014

Financial Stability Board, Shadow Banking, Systemic Risk

FSB publishes the 2014 update of the G-SIBs list The FSB publishes today its annual update of the list of G-SIBs, using end-2013 data and the Basel Committee updated assessment…

FSB releases report on shadow banking — refining metrics and lower risk numbers

November 4, 2014

Jonathan Cooper

Financial Stability Board, Shadow Banking, topstory

On October 30th the FSB released “Global Shadow Banking Monitoring Report 2014”, their annual examination of the world of shadow banking. Shadow banking is described as “non-bank credit intermediate with…

FSB: reissue of Key Attributes of Effective Resolution Regimes for Financial Institutions

October 16, 2014