FSB, Priorities and Work Plans
To let financial regulatory reforms work out, there are priorities and work plans. Let us find out one by one in details.
Creating continuous markets
The FSB remains fully committed to the rapid completion of the G20’s agreed reforms to OTC derivatives markets. All jurisdictions are advised to promptly complete the necessary changes to legislative and regulatory frameworks to put these reforms in practice. In other words, more than agreement is requested in forms of actual actions. Member jurisdictions are requested to confirm their changes before the September Summit.
Strengthening the oversight and regulation of shadow banking
Last November, an initial set of recommendations to strengthen the oversight and regulation of shadow banking was introduced. Now the recommendations are being refined by FSB to address bank-like risks to financial stability emerging from outside the regular banking system.
Building resilient from financial institutions
In January, agreement was reached by the Group of Governors and Heads of Supervision on the Liquidity Coverage Ratio (LCR) to be applied to banks. The LCR will be introduced in 2015 as planned to allow the global banking system sufficient time to adjust.
At the moment, progress is being made in developing and testing a methodology for identification of global systemically important insurers (G-SIIs), and developing appropriate policy measures. An identification methodology for non-bank G-SIFI will be issued for consultation in the second half of 2013.
So, what come up in your mind? As those above mentioned are the priorities and work plans of FSB, how are they going to be implemented? Keep your eyes on the next post talking about ‘implementation of reforms.’