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 reports to G20 on progress of financial regulatory reforms The FSB published on 19 April a letter from the Chairman to the G20 Finance Ministers and Central Bank Governors describing progress on the financial regulatory reform programme, and a progress report on reforming resolution regimes and resolution planning for G-SIFIs. FSB announces the successful implementation of the initial phase of a common data template for G-SIBs The first phase of the Data Gaps Initiative (Phase 1) started in March 2013 with the harmonized collection and pooling of improved consolidated data on bilateral counterparty credit exposures of major systemic banks, as well as their consolidated aggregated exposures. FSB publishes its fifth progress report on implementation of OTC derivatives market reforms The April 2013 edition of this twice-yearly series of reports takes stock of progress made by standard-setting bodies, national and regional authorities and market participants towards meeting the G20 commitments to OTC derivatives market reforms. FSB completes peer review on resolution regimes The FSB published on 11 April the thematic peer review report on resolution regimes. The report evaluates FSB jurisdictions' existing resolution regimes and planned changes to those regimes using the FSB Key Attributes for Effective Resolution Regimes for Financial Institutions as a benchmark, and makes recommendations to support its timely and consistent implementation. FSB launches peer review on the FSB Principles for Reducing Reliance on CRA Ratings The FSB launched in March 2013 a thematic peer review on the FSB Principles for Reducing Reliance on Credit Rating Agency (CRA) Ratings. As part of this review, the FSB invites feedback from financial institutions, industry associations and other stakeholders on good practices for assessing, removing and/or replacing references to CRA ratings in laws and regulations, as well as on ways to both encourage disclosure by financial institutions of information about their credit assessment processes and to further strengthen those processes. Feedback should be submitted to the FSB by 7 May 2013. For additional information, see the questionnaire sent to national authorities for completion. FSB Regional Consultative Group for Asia holds its fourth meeting The FSB Regional Consultative Group (RCG) for Asia held its fourth meeting on 28 March 2013 in Kuala Lumpur, Malaysia. The Press Release issued following the meeting can be found here. Membership of the six FSB regional consultative groups can be found here. FSB Regional Consultative Group for Middle East and North Africa holds its third meeting The FSB Regional Consultative Group for the Middle East and North Africa (RCG-MENA) held its third meeting on 16 March in Riyadh City, Saudi Arabia. The meeting also appointed Erdem Basci, Governor, Central Bank of the Republic of Turkey as the member co-chair and elected Riad Salame, Governor, Central Bank of Lebanon as the non-member co-chair of the RCG-MENA, each for a term of two years, commencing from 1 July 2013. The Press Release issued following the meeting can be found here. FSB publishes progress reports to the G20 on the financial regulatory reform programme The FSB published on 16 February a letter from the Chairman to the G20 Finance Ministers and Central Bank Governors describing progress on the financial regulatory reform programme; an assessment of the effect of financial reforms on the availability of long-term investment finance, and a joint report from the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board on their progress in converging their standards. FSB completes thematic peer review on risk governance The FSB published on 12 February a thematic peer review on risk governance. The report takes stock of risk governance practices at both national authorities and firms, notes progress made since the financial crisis, identifies sound practices and offers recommendations to support further improvements. FSB Regional Consultative Group for Sub-Saharan Africa holds its third meeting The FSB Regional Consultative Group for Sub-Saharan Africa held its third meeting on 7 February in Nairobi, Kenya. The Press Release issued following the meeting can be found here. FSB completes peer review of South Africa The FSB published on 5 February 2013 the report on the peer review of South Africa. This forms part of a regular programme of peer reviews of FSB member jurisdictions that began in 2010. The report examines the progress in implementing two important financial reforms for South Africa that are relevant for the broader FSB membership: interagency coordination and the regulatory structure; and regulation of over-the-counter (OTC) derivatives markets. The draft report for discussion was prepared by a team of experts drawn from FSB member institutions. FSB Plenary meets in Zurich The FSB met on 28 January in Zurich. At the meeting, the FSB discussed vulnerabilities in the global financial system and the progress in authorities' work to strengthen financial regulation, including on OTC derivatives and resolution regimes. The FSB also took the procedural steps to constitute itself as an association based on Articles of Association. The press release can be found here. FSB publishes summary of workshop on compensation practices As recommended by the 2012 implementation progress report on compensation practices, the FSB organised in November 2012 a workshop on this topic. Senior executives from global systemically important banks and from consulting firms took part in the workshop, which focused on the alignment of compensation with ex ante risk taking, the alignment of compensation with performance, and the identification of material risk takers. The FSB has published a summary of the workshop and welcomes any further feedback on its main take-aways; feedback should be sent to fsb@bis.org. FSB fifth progress note on the implementation of the legal entity identifier (LEI) initiative This is the fifth of a series of notes on the implementation of the legal entity identifier (LEI) initiative. The document can be found here. Formation of the LEI Regulatory Oversight Committee of the Global LEI System Member and Observers to the ROC are published here. Request for information on Switzerland as the potential domicile for the Global LEI Foundation (or similar entity) The FSB Secretariat has issued a request for information from legal professionals, and experts in Swiss law, to provide a legal opinion on a number of questions regarding Switzerland as the domicile for the Global LEI Foundation (or similar entity such as an Association) operating the Central Operating Unit of the Global LEI System. Public comments received on the FSB consultation on Recovery and Resolution Planning The FSB published on 18 December the public responses to the consultative document on Recovery and Resolution Planning issued on 2 November. FSB Regional Consultative Group for the Commonwealth of Independent States holds its second meeting The FSB Regional Consultative Group (RCG) for the Commonwealth of Independent States held its second meeting on 14 Dec 2012 in Moscow, Russia. The Press Release issued following the meeting can be found here. FSB fourth progress note on the implementation of the legal entity identifier (LEI) initiative This is the fourth of a series of notes on the implementation of the legal entity identifier (LEI) initiative. The document can be found here. FSB Regional Consultative Group for the Americas holds its third meeting The FSB Regional Consultative Group (RCG) for Americas held its third meeting on 10 Dec 2012 in Hamilton, Bermuda. The Press Release issued following the meeting can be found here. FSB Publishes Initial Integrated Set of Recommendations to Strengthen Oversight and Regulation of Shadow Banking The FSB published on 18 November 2012 for public consultation an initial integrated set of policy recommendations to strengthen oversight and regulation of the shadow banking system: (i) An Integrated Overview of Policy Recommendations; (ii) Policy Framework for Strengthening Oversight and Regulation of Shadow Banking Entities; and (iii) Policy Recommendations to Address Shadow Banking Risks in Securities Lending and Repos. The FSB also issued its Global Shadow Banking Monitoring Report 2012 (and accompanying data) analysing recent trends and risks in the shadow banking system. FSB Regional Consultative Group for Asia holds its third meeting The FSB Regional Consultative Group (RCG) for Asia held its third meeting on 12 Nov 2012 in Seoul, South Korea. The Press Release issued following the meeting can be found here. Allocation of Pre-LOU Prefixes for Pre-LEI Issuance Four digit prefixes allocated to sponsored Pre-LOU solutions in accordance with the number allocation scheme to be used for the Global LEI System. Establishment of the Regulatory Oversight Committee for the Global Legal Entity Identifier (LEI) System The G20 Finance Ministers and Central Bank Governors endorsed the Charter of the Regulatory Oversight Committee (ROC) for the Global Legal Entity Identifier (LEI) System on 5 November, initiating the process to establish the ROC. Membership of the ROC is open to all eligible authorities that assent to the Charter, by letter to the Chair of the FSB. Observer status is also available. To participate in the first meeting of the ROC in January 2013, the deadline for receipt of assent letters is 10 January 2013. For more details contact Nigel Jenkinson and Irina Leonova at nigel.jenkinson@bis.org; irina.leonova@bis.org. FSB reports to the G20 on progress of financial regulatory reforms The Chairman of the FSB reported to G20 Ministers and Governors on 4-5 November 2012 on progress in the financial regulatory reform programme. The FSB has published: (i) a letter by the FSB Chair to the G20 on progress in reforms; (ii) a summary of FSB member jurisdictions' declared approaches to central clearing of OTC derivatives; and (iii) a roadmap on reducing reliance on CRA ratings. FSB publishes update on cooperation and information exchange The FSB published on 2 November an update on jurisdictions evaluated under its initiative to encourage the adherence of all countries and jurisdictions to regulatory and supervisory standards on international cooperation and information exchange. FSB consults on guidance for recovery and resolution planning for SIFIs The draft guidance builds on the experience of authorities to date in implementing the recovery and resolution planning requirements set out in the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions and covers: - recovery triggers and stress scenarios to be used by firms in recovery planning; - the development of resolution strategies and associated operational resolution plans tailored to different group structures; and - the identification of the critical functions and supporting services that would need to be maintained in a crisis for reasons of systemic stability. Comments on the consultative document should be submitted to fsb@bis.org by Friday, 7 December 2012. FSB releases reports on progress in implementing the SIFI framework The FSB published on 1 November 2012 three documents on latest steps in the implementing the FSB's policy framework for addressing the systemic and moral hazard risks associated with systemically important financial institutions (SIFIs): - update of the group of global systemically important banks (G-SIBs); - progress report on resolution of SIFIs, including progress in reforming national resolution regimes and advancing recovery and resolution planning for global SIFIs; and - progress report on increasing the intensity and effectiveness of SIFI supervision, including further recommendations to make supervision more proactive and effective. FSB publishes its fourth progress report on implementation of OTC Derivatives Market Reforms This report takes stock of the readiness of market infrastructure across the FSB's member countries to provide clearing services, collect and disseminate trade data and provide organised trading platforms for OTC derivatives. The report also describes the progress made since June 2012 by international standard setters, national and regional jurisdictions and market participants toward meeting the G20 Leaders commitment to reform OTC derivatives markets. Enhanced Disclosure Task Force (EDTF) publishes report with recommendations for improving bank risk disclosures The EDTF, a private-sector task force formed at the initiative of the FSB, published on 29 October its report, Enhancing the Risk Disclosures of Banks. The EDTF's principles and recommendations for improving disclosures, together with examples of leading practice risk disclosures, are designed to provide timely information useful to investors and other users. The FSB's press release welcoming the report is here. FSB third progress note on the implementation of the global LEI Initiative This is the third of a series of notes on the implementation of the legal entity identifier (LEI) initiative. The progress note follows the global LEI system operational solution demonstration day, as well as PSPG and IG meetings. FSB Plenary meets in Tokyo The FSB met on 10-11 Oct in Tokyo. At the meeting, the FSB discussed vulnerabilities currently affecting the global financial system and the progress in authorities' ongoing work to strengthen global financial regulation including on systemically important financial institutions, OTC derivatives and shadow banking. The press release can be found here. FSB Regional Consultative Group for Middle East and North Africa holds its second meeting The FSB Regional Consultative Group for Middle East and north Africa held its second meeting on 1 October 2012 in Kuwait City, Kuwait. The Press Release issued following the meeting can be found here. FSB Regional Consultative Group for Sub-Saharan Africa holds its second meeting The FSB Regional Consultative Group for Sub-Saharan Africa held its second meeting on 25 September 2012 in Cape Town, South Africa. The Press Release issued following the meeting can be found here. FSB Regional Consultative Group for Europe holds its third meeting The FSB Regional Consultative Group (RCG) for Europe held its third meeting on 24 September 2012 in Basel, Switzerland. The Press Release issued following the meeting can be found here. FSB second progress note on the implementation of the global LEI Initiative This is the second of a series of notes on the implementation of the legal entity identifier (LEI) initiative. Progress reports on the LEI initiative will be prepared approximately every three weeks. FSB progress note on the implementation of the global LEI Initiative This is the first of a series of notes on the implementation of the legal entity identifier (LEI) initiative. Progress reports on the LEI initiative will be prepared approximately every three weeks. Global Legal Entity Identifier (LEI) System Operational Solution Demonstration Day Invitation The FSB LEI Implementation Group (IG) is seeking expressions of interest from external experts to participate in and contribute to the global LEI system operational solution demonstration day that will take place on October 15, 2012 in Basel, Switzerland. FSB launches peer review on resolution regimes The FSB launched on 3 August 2012 a peer review on resolution regimes. The review will evaluate FSB member jurisdictions' existing resolution regimes across different financial sectors, as well as any planned changes to those regimes, using the Key Attributes of Effective Resolution Regimes for Financial Institutions ("Key Attributes") as a benchmark. As part of this review, the FSB invites feedback from financial institutions, industry associations and other stakeholders on material inconsistencies or gaps (compared to the Key Attributes) of national resolution regimes in different FSB member jurisdictions. Feedback should be submitted to the FSB by 28 September 2012. For additional information, see the questionnaire. Request for views regarding the jurisdiction for establishment of the Global LEI Foundation and Central Operating Unit The FSB Secretariat is seeking views regarding the appropriate jurisdiction for establishment of the Global LEI Foundation and Central Operating Unit of the global LEI system. Legal experts are invited to provide views by 10 September on a pro-bono basis. Formation and launch of the LEI Private Sector Preparatory Group Representatives from well over 100 institutions from some 25 countries have joined the FSB LEI Private Sector Preparatory Group (PSPG). The inaugural meeting of the PSPG was held in New York City on 25 July. Work will now be taken forward in three workstreams. Basel Committee issues consultative document on a framework for dealing with domestic systemically important banks (D-SIBs) The Basel Committee on Banking Supervision issued on 29 June the consultative document "A framework for dealing with systemically important banks", which includes a set of principles covering the assessment methodology and the higher loss absorbency requirement for domestic systemically important banks (D-SIBs). The proposed framework requires banks identified as D-SIBs by their national authorities to comply with the principles from January 2016. Comments on the consultative document should be submitted by Wednesday, 1 August to baselcommittee@bis.org. FSB publishes progress reports to G20 Leaders and recommendations on strengthening the FSB's capacity, resources and governance The FSB published a letter from the Chairman to G20 Leaders highlighting key financial reform issues for the Summit's attention, an overview report on the progress made in developing and implementing global financial regulatory reforms since the G20 Cannes Summit in November 2011, and a "scoreboard status report" developed by the FSB Secretariat in consultation with FSB members providing a visual summary on implementation of G20 recommendations. The responses to the FSB Implementation Monitoring Network's survey on national/regional progress in implementing the G20 agreed reforms were also published today. In addition, the FSB has published recommendations on strengthening its capacity, resources and governance. The FSB publishes study on the effects of regulatory reforms on Emerging Market and Developing Economies (EMDEs) The study which was prepared in response to a February 2012 request by G20 Finance Ministers and Central Bank Governors, identifies potential unintended consequences of internationally agreed regulatory regulatory reforms on EMDEs. The intent of the study is not to re-open those reforms but to better understand their possible effects on EMDEs in the context of broader post-crisis developments and to facilitate their timely, full and consistent implementation. FSB publishes its third progress report on implementation of OTC Derivatives Market Reforms This report describes the progress made since October 2011 by international standard setters, national and regional jurisdictions and market participants toward meeting the G20 Leaders commitment to reform OTC derivatives markets. FSB publishes progress report on compensation monitoring The FSB published on 13 June a report on "Implementing the FSB Principles for Sound Compensation Practices and their Implementation Standards". The report describes the progress made by member jurisdictions and firms since the October 2011 thematic peer review and forms part of the FSB's Coordination Framework for Implementation Monitoring. Basel Committee publishes report on Basel III implementation The Basel Committee on Banking Supervision published on 11 June its "Report to G20 Leaders on Basel III Implementation". The interim report details the progress that the members of the Basel Committee have made to date in implementing the Basel III regulatory framework (including Basel II and Basel 2.5, which now form integral parts of Basel III) on three levels: Level 1: timely adoption of Basel III; Level 2: regulatory consistency with Basel III; Level 3: consistency of outcomes, initially focusing on risk-weighted assets. The Basel Committee's implementation review process forms part of the FSB's Coordination Framework for Implementation Monitoring. FSB publishes "A Global Legal Entity Identifier for Financial Markets: FSB Report to the G20" The FSB published on 8 June a report entitled "A Global Legal Entity Identifier for Financial Markets". This report is presented to the G20 for consideration and responds to the mandate issued by the G20 at the Cannes Summit. It sets out 35 recommendations for the development and implementation of the global LEI system. These recommendations are guided by a set of "High Level Principles" which outline the objectives that a global LEI system should meet. FSB Plenary meets in Hong Kong The FSB met on 29-30 May in Hong Kong. At the meeting, the FSB discussed vulnerabilities currently affecting the global financial system and the progress in authorities' ongoing work to strengthen global financial regulation including on systemically important financial institutions, OTC derivatives and shadow banking. The press release can be found here. FSB Regional Consultative Group for the Americas holds its second meeting The FSB Regional Consultative Group (RCG) for the Americas held its second meeting on 25 May 2012 in Santiago, Chile. The Press Release issued following the meeting can be found here. Membership of the six FSB regional consultative groups can be found here. 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 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 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 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. 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. |