The interim Financial Policy Committee (FPC) met on 16 June and agreed a number of recommendations, including that FSA should:
- ensure permanently improved reporting of sovereign and banking sector exposures by major UK bans;
- extend its review of forbearance on a global basis;
- monitor closely risks associated with opaque funding structures, such as collateral swaps or similar transactions that exchange-traded funds use; and
- advise banks to build capital during periods of strength so they are better prepared for Basel III.
(Source: Financial Stability Review June 2011)