At a meeting in Baden-Baden, Germany, on 17 and 18 March 2017, G20 Finance Ministers and Central Bank Governors expressed their support to the finalisation and implementation of post-crisis reforms. One of the key objectives going forward is to monitor and address emerging risks and vulnerabilities, particularly those which have a systemic dimension or that are stemming from the interconnectedness with the shadow banking sector. The FSB committed to deliver guidance on central counterparty resolution planning as well as a series of reports, including on FinTech and on misconduct risk, by the July G20 Summit. In addition, the FSB is expected to release in July 2017 a framework for the assessment of the overall post-implementation effects of the financial reforms adopted in the wake of the 2008 crisis.
In the meanwhile, the finalisation of the so-called Basel III reforms within the Basel Committee on Banking Supervision (‘BCBS’) is being further delayed. Initially planned for 3 January 2017, the meeting of oversight body of BCBS has now been postponed several times. In a recent speech, Deutsche Bundesbank’s Andreas Dombret indicated that the finalisation of the reform package was not to be expected in the short term as disagreements remain on key elements related to the treatment of banks’ internal models. Moreover, despite the G20 renewed commitment to post-crisis reforms, uncertainty around the new US administration’s stance on these issues appears to be a contributing factor to the delay in the finalisation of Basel III reforms.