FSB, Implementation of Reforms
Making an agreement and designing reforms are not enough. The real impacts of reforms are being effective, once ‘implemented.’ For this post, implementation of reforms is addressed.
Consistent implementation of Basel III is fundamental to strengthening the resilience of the global banking system, maintaining market confidence in the regulatory reforms and providing a level playing field for internationally active banks. FSB and BCBS (the Basel Committee on Banking Supervision) will prepare a full update on countries’ adoption of Basel III in domestic regulation for the upcoming meeting in April.
Resolutions Regimes and G-SIFI resolution plans
An effective and credible resolution regime for SIFIs is a critical component of the policy framework for ending ‘too-big-to-fail.’ Full implementation of the FSB Key Attributes of Effective Resolution Regimes will provide authorities with the powers and tools necessary for this purpose.
Reducing the resilience on Credit Rating Agency (CRA) ratings
The FSB has recently launched a thematic peer review to assist its members to fulfill their commitments under the roadmap for implementing the FSB principles for reducing reliance on CRA ratings. The peer review will be completed in early next year.
To assess whether reforms are on the right track, FSB keep monitoring the implementation phase of regulatory reforms. Let us wait and see what is going to be discussed and agreed at the next FSB meeting to be held in April!