The FSB has been established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies in the interest of financial stability. more
What's New
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FSB Regional Consultative Group for Asia holds its second meeting The FSB Regional Consultative Group (RCG) for Asia held its second meeting on 14 May 2012 in Kuala Lumpur, Malaysia. The group is co-chaired by Choongsoo Kim, Governor, Bank of Korea and Zeti Akhtar Aziz, Governor, Bank Negara Malaysia and includes financial authorities from 16 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 announces the establishment of the Enhanced Disclosure Task Force The FSB has facilitated the formation of a private-sector task force - the Enhanced Disclosure Task Force - to develop principles for improved disclosures and to identify recent leading risk disclosure practices. The task force will report its recommendations to the FSB during October 2012, which will be published. The Press Release issued to announce the formation of the new task force can be found here. FSB Regional Consultative Group for Europe holds its second meeting The FSB Regional Consultative Group (RCG) for Europe held its second meeting on 27 April 2012 in Basel. The group is co-chaired by Tom Scholar, Second Permanent Secretary, UK Treasury and Yves Mersch, Governor, Central Bank of Luxembourg and includes financial authorities from 23 countries in the region. This is the first of the second round of meetings of the six RCGs set up under the FSB initiative for exchange of views amongst the FSB member and non-member countries on vulnerabilities affecting financial systems and on initiatives to promote financial stability. The Press Release issued following the meeting can be found here. Membership of the six FSB regional consultative groups can be found here. FSB publishes interim report on securities lending and repos The FSB published on 27 April a report entitled Securities Lending and Repos: Market Overview and Financial Stability Issues. This report describes the segments, operations and practices of these securities financing markets, which may constitute an important element of the shadow banking system. The FSB is examining the regulation of securities financing markets from a financial stability perspective as part of its wider work on shadow banking. The FSB's recommendations will be issued by the end of 2012. FSB publishes progress reports to the G20 on the financial regulatory reform programme The FSB published on 20 April a letter from the Chairman to the G20 Finance Ministers and Central Bank Governors describing progress on the financial regulatory reform programme, and three progress reports on specific aspects of the programme: extending the G-SIFI framework to domestic systemically important banks; strengthening the oversight and regulation of the shadow banking system; and a joint report from the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board on their progress in converging their standards, together with a report on enhancements to the governance of the IASB. FSB issues principles for sound residential mortgage underwriting practices The FSB issued on 18 April 2012 principles for sound residential mortgage underwriting practices. The principles provide a framework for jurisdictions to set minimum acceptable underwriting standards so as to limit the risks that mortgage markets pose to financial stability and to better safeguard borrowers and investors. The report also sets out an implementation framework through which jurisdictions can apply minimum lending standards, and describes tools that could be used to monitor and supervise these standards. FSB launches peer review on risk governance The FSB launched on 4 April 2012 a peer review on risk governance across FSB member jurisdictions. The peer review will take stock of progress in addressing the weaknesses in risk governance identified during the recent financial crisis at both national authorities and firms. As part of this review, the FSB invites feedback from financial institutions, industry associations and other stakeholders on their experiences and views regarding risk governance, either in a particular country or across several countries. Feedback should be submitted to the FSB by 11 May 2012 . For additional information, see the questionnaire for national authorities. Public comments received on the FSB consultation on a Common Template for Global Systemically Important Banks The FSB published on 29 March the public responses from banking associations to the consultation paper issued in October. Further engagement with the financial industry will be taken on over 2012. The FSB would like to bring together individual institutions and stakeholders to the Common Template for Global Systemically Important Banks at a workshop to be held in Basel on 2 May 2012. FSB encourages further work to improve financial institutions' risk disclosure practices The FSB issued a press release [RT1] on 20 March setting out steps to encourage improved risk disclosures by financial institutions. As part of this, the FSB will facilitate the formation of a private sector task force to develop principles for improved disclosures based on current market conditions and risks, including ways to enhance the comparability of disclosures. The FSB will also ask the task force to identify leading practices among current risk disclosures. The task force will be encouraged to have dialogue with standard-setting bodies. Notice on Technical Features of the Legal Entity Identifier (LEI) The FSB is working intensively to meet the G-20 mandate on the Legal Entity Identifier (LEI) initiative. The Board has decided to provide clarity on two technical points in order to give early guidance to industry. FSB publishes peer review on deposit insurance systems The Financial Stability Board (FSB) published on 8 February the report on deposit insurance systems. The global financial crisis illustrated the importance of effective depositor compensation arrangements. In response, the Basel Committee on Banking Supervision (BCBS) and the International Association of Deposit Insurers (IADI) jointly issued in June 2009 the Core Principles for Effective Deposit Insurance Systems. Using the Core Principles as a benchmark, the peer review takes stock of deposit insurance systems (DISs) in FSB member juridisdictions and draws lessons about the effectiveness of reforms in response to the crisis. FSB Regional Consultative Group for Sub-Saharan Africa holds its first meeting The FSB Regional Consultative Group for Sub-Saharan Africa held its inaugural meeting on 3 February 2012 in Pretoria. The group is co-chaired by Lesetja Kganyago, Deputy Governor, South African Reserve Bank and Njuguna Ndung'u, Governor, Central Bank of Kenya and includes financial authorities from 9 countries 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 completes peer review of Canada The Financial Stability Board (FSB) published on 30 January the report on its peer review of Canada. This forms part of a regular programme of peer reviews of FSB member jurisdictions that began in 2010, which 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. Inaugural FSB Regional Consultative Group for the Commonwealth of Independent States The FSB Regional Consultative Groups (RCG) for the Commonwealth of Independent States held its inaugural meeting on 30 January 2012 in Moscow. This is the fifth RCG that met 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 press release issued following the meeting can be found here. Membership of the six FSB regional consultative groups can be found here. FSB completes peer review of Switzerland The Financial Stability Board (FSB) published on 25 January the report on its peer review of Switzerland. This forms part of a regular programme of peer reviews of FSB member jurisdictions that began in 2010, which 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. Inaugural FSB Regional Consultative Group Meetings The FSB Regional Consultative Groups for the Americas, Asia, Europe held their inaugural meetings in late 2011 while the RCG for Middle East and North Africa met in January 2012. The meetings are 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 press releases issued following the meetings can be found here. Membership of the six FSB regional consultative groups can be found here. 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. |