FSB report on reducing reliance on credit ratings. The Financial Stability Board published the final peer review report on national authorities’ implementation of the “FSB Principles for Reducing Reliance on CRA Ratings.” The review found that progress toward the removal of references to CRA ratings from standards, laws and regulation has been uneven. In addition, the key challenge lies in developing alternative standards of creditworthiness and processes so that CRA ratings are not the sole input to credit risk assessment. (5/12/2014) FSB press release.
FSB to collect additional data from G-SIBs. The Financial Stability Board announced the launch of Phase 2 of its Data Gaps initiative to implement a common data template to collect key granular data from global systemically important banks (G-SIBs) about their assets and liabilities. The data will provide authorities with a framework for assessing the interlinkages among the largest banks and the concentration of these institutions to different sectors and markets. The FSB will collect information on G-SIBs’ Institution-to-Institution liabilities, their largest funding providers (banks and non-banks) and their funding structure. (5/6/2014) FSB press release.
Joint Forum reports on point of sale disclosure. The Joint Forum (comprised of the Basel Committee on Banking Supervision, the International Organization of Securities Commissions and the International Association of Insurance Supervisors) released its final report on point of sale disclosure in the insurance, banking and securities sectors. (4/30/2014) Joint Forum press release.