BCBS publishes Net Stable Funding Ratio standards. The Basel Committee on Banking Supervision (BCBS) published “Disclosure requirements for the Net Stable Funding Ratio (NSFR)” which was developed to improve the transparency of regulatory funding requirements, reinforce the principles for sound liquidity risk management and supervision, strengthen market discipline and reduce market uncertainty. (6/22/2015) BCBS press release.
Regulators scrap asset manager “too big to fail” plan. In a statement released to wrap up discussions at its annual conference, IOSCO put on hold its plans to assess asset managers’ systemic risk under the “too big to fail” maxim. IOSCO instead will carry out a full review of asset management activities and products. The move comes after strong industry and regulatory reaction to the second consultation by IOSCO and the Financial Stability Board (FSB). (6/17/2015) IOSCO press release. See also Bloomberg and The Wall Street Journal.
Ensuring enforcement activity acts as a credible deterrent. IOSCO’s Committee on Enforcement and the Exchange of Information (Committee 4) published the report “Credible Deterrence in the Enforcement of Securities Regulation,” which seeks to identify and promote awareness of those factors that may credibly deter misconduct in securities and investment markets. IOSCO recommends regulators consider how they might integrate credible deterrence into new or existing enforcement strategies. (6/17/2015) IOSCO press release.
ISDA BRRD tracker. The International Swaps and Derivatives Association, Inc. (ISDA) has launched the European Bank Recovery and Resolution Directive (BRRD) Implementation Monitor. The publication will keep track of implementation of the directive across all EU member states with a particular focus on the derivatives-specific provisions, and will be updated on a regular basis to reflect the progress made in each jurisdiction. (6/17/2015) Monitor.
Industry support for ISDA derivatives reporting requirements. A group of 11 industry associations published a letter supporting a set of principles developed by ISDA aimed at improving consistency in regulatory reporting standards for derivatives. The principles call for derivatives reporting requirements to be harmonized across borders, and for the further development and adoption of global data standards. (6/15/2015) ISDA press release. See also Reuters.
Basel Committee assesses implementation of risk-based capital and LCR rules in India and South Africa. BCBS published reports assessing the implementation of the Basel risk-based capital framework and the Liquidity Coverage Ratio (LCR) for India and South Africa. BCBS concluded that both outcomes were highly positive, noting that several aspects of the domestic rules in both countries were more rigorous than required under the Basel framework. (6/15/2015) BCBS press release.
Chile to host 2016 International Conference of Banking Supervisors. BCBS announced that Chile will host the 19th International Conference of Banking Supervisors (ICBS), which will take place in 2016. (6/12/2015) BCBS press release.
FSB-IOSCO posts public comments on consultation on assessment methodology for identifying NBNI G-SIFIs. IOSCO and FSB announced that public comments to the “Second Consultative Document on Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions (NBNI G-SIFIs)” have been published. (612/2015) IOSCO announcement and documents; see also FSB announcement and documents.
IOSCO moves to avoid over reliance on credit ratings. IOSCO published its final report on “Good practices on reducing reliance on CRAs in Asset Management” outlining eight practices to help asset managers avoid a “mechanistic reliance” on external credit ratings, which could trigger forced asset sales in the event of downgrades. (6/9/2015) IOSCO press release.