FSB reports to G-20 on financial reforms: FSB has written to the G-20 finance ministers and central bank governors on progress and challenges in financial reforms. The letter reviews the outstanding reforms that will be delivered during the year and by the time the G-20 leaders' summit takes place in Brisbane, Australia, on 14-15 November. It also outlines how, beyond the Brisbane summit, financial reform will shift its focus to ensuring mutual trust and realising the benefits of an open system. This will be achieved through:

  • Global standards to address globally systemic institutions, so that spill-over effects caused by a bank's failure can be prevented or tackled in a fair and predictable way, rather than through unilateral actions such as ring-fencing, compulsory subsidiarisation or extraterritoriality.  
  • Outcomes-based approaches to resolve cross-border issues, requiring jurisdictions to defer to each other when the quality of their respective regulations and enforcement is similar. In this respect, in April
     the OTC Derivatives Regulators Group will publish a list of remaining cross-border implementation issues, and in September FSB will publish a report on jurisdictions' processes enabling them to defer to each other. 
  • Peer reviews and impact assessments, to correct gaps and inconsistencies in implementation and ensure measures have their intended effect.
  • Enhanced cooperation and avoidance of fragmentary domestic measures. This cooperation should extend to the assessment of whether there are any spill-overs of national regulatory policy initiatives. In April FSB will propose a framework for authorities to share information on shadow banking. 

(Source: Financial Reforms  Progress and Challenges)