FSB publishes shadow banking report: FSB has published its fourth annual report on global shadow banking. It looks at statistics from 25 jurisdictions and the euro area and aims to identify and measure potential sources of systemic risk outside the current scope of prudential regulation. This year's report notes, among other things, that:
- advanced economies have the largest shadow banking sectors but emerging markets have the highest growth rates;
- globally, trust companies and other investment funds grew quickest; and
- refinement of hedge funds data may lead to further information on the sector in future reports.
(Source: FSB Publishes Shadow Banking Report)
FSB reports on compensation practices: FSB has published its third report on how its members have implemented its Principles for Sound Compensation Practices and their Implementation Standards. It found all members have implemented to the fullest extent they can but there is a tendency to restrict application. It has also noted significant variations in how jurisdictions define risk-taking functions and how they apply malus and clawback. (Source: FSB Reports on Compensation Practices)