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)