G-20 pleased with regulatory reform progress: G-20 has studied a report from the Financial Stability Board (FSB) and is pleased at the progress towards completing the financial reform agenda. It notes some outstanding issues:
- finalising the international standard on total loss-absorbing capacity for global systemically important banks;
- finalising the methodology for identifying systemically important financial institutions beyond the banking and insurance sector by the end of 2015. G-20 wants to apply the Key Attributes of Effective Resolution Regimes for all parts of the financial sector that could be systemic in the event of failure;
- enhancing cross-border cooperation, particularly on resolution and over-the-counter (OTC) derivatives markets reforms;
- progressing work on shadow banking; and
- analysing market misconduct and the recent trend of financial institutions terminating and restricting business relationships with categories of customers.
FSB's report to G-20 also noted the need to complete capital resources standards and further work on supervision of central counterparties (CCPs) and their main clearing members, as well as on CCP recoverability and resolution. It also outlined plans to ensure trade reporting is as effective as possible. Finally it noted a need to review conduct and governance standards. (Source: G-20 Pleased with Regulatory Reform Progress and FSB Writes to G-20 on Reform Progress)