CLS Blue Sky Blog summarized an article which appeared in Oxford University Press's January 2013 edition of the Capital Markets Law Journal. The article provides a comparative analysis of the shadow banking laws and regulations which are expected to be promulgated by the Financial Stability Board ("FSB"), the U.S. (via its designation of non-bank systemically important financial institutions), and the European Systemic Risk Board.
According to Bloomberg, China has issued rules which allow brokerages to securitize corporate receivables, loans, and infrastructure facilities.
The Basel Committee on Banking Supervision issued a proposal that would reduce the risks associated with large single counter-party exposures. The proposed new standard would create greater consistency in the way banks and supervisors measure, aggregate and control single counter-party exposure. The proposals include policy measures designed to capture bank-like activities conducted by non-banks that are of concern to supervisors. The Committee's proposals address large exposures to funds, securitization structures and collective investment undertakings. The proposals include a requirement for banks to apply the look-through approach when feasible and to assess possible additional risks that do not relate to the structure's underlying assets, but rather to the structure's specific features and to any third parties linked to the structure. BIS Press Release.