Basel Committee on Banking Supervision
Basel Committee reports on progress toward implementation of principles for effective supervisory colleges. The Basel Committee on Banking Supervision published a progress report on its principles for effective supervisory colleges. The report notes that supervisors have made progress towards enhanced information-sharing, coordinated risk assessment activities, and their contribution to crisis preparedness. (12/21/2017) BIS press release.
Basel Committee consults on technical amendment to Net Stable Funding Ratio. The Basel Committee published a technical amendment to the treatment of extraordinary monetary policy operations in the Net Stable Funding Ratio, which proposes to allow for reduced required stable funding factors for central bank claims with maturity of more than 6 months. Comments are due on or before February 5, 2018. (12/21/2017) BIS press release.
Basel Committee proposes streamlined stress testing principles. The Basel Committee requested comments on a consultative document that proposes to streamline the existing set of stress testing principles by stating them at a high enough level to be applicable across many banks and jurisdictions and remain relevant as stress testing practices continue to develop. Comments are due on or before March 23, 2018. (12/20/2017) BIS press release.
Basel Committee reports on range of practices in supervisory and bank stress testing. The Basel Committee published a report that describes and compares supervisory and bank stress testing practices and highlights areas of evolution. (12/20/2017) BIS press release.
Basel Committee finalizes Basel III reforms. The Basel Committee announced that its oversight body, the Group of Central Bank Governors and Heads of Supervision, has finalized the remaining Basel III post-crisis financial regulatory reforms. Among other things, the final reforms include a revised standardized approach for credit risk; revisions to the measurement of the leverage ratio and a leverage ratio buffer for global systemically important banks; and an aggregate output floor to ensure that banks’ risk-weighted assets generated by internal models are no lower than 72.5% of those calculated by the Basel III framework’s standardized approaches. (12/7/2017) BIS press release.
Basel Committee finishes review of the regulatory treatment of sovereign exposures. The Basel Committee published a discussion paper that contains the findings of its review of the regulatory treatment of sovereign exposures. Although it has decided not to consult on the ideas presented in the paper, the Committee has requested stakeholder views to inform its long-term thinking on the issue. Comments are due on or before March 9, 2018. (12/7/2017) BIS press release.
Financial Stability Board
FSB issues UTI governance arrangements and the implementation plan. The Financial Stability Board released a report that sets out governance arrangements and the implementation plan for the unique transaction identifier, which will be used for the reporting of over-the-counter derivative transactions. Among other things, the report recommends that jurisdictions implement the UTI no later than the end of 2020. (1/2/2018) FSB press release.
FSB proposes methodology for assessing implementation of effective resolution regimes in the insurance sector. The FSB requested comments on a consultation document that proposes a methodology for assessing the implementation in the insurance sector of the Key Attributes of Effective Resolution Regimes for Financial Institutions. Comments are due on or before February 28, 2018. (12/21/2017) FSB press release.
International standard-setting bodies to conduct surveys on incentives to centrally clear OTC derivatives trades. The FSB announced that it has joined with the Basel Committee, the Committee on Payments and Market Infrastructures, and the International Organization of Securities Commission to launch surveys that will review the effects on incentives to centrally clear OTC derivatives trades following the implementation of the G20 regulatory reforms. The surveys cover several areas, including the effects of G20 reforms on derivatives markets, client clearing service provision, and other market structure issues and observations. (12/14/2017) FSB press release. See also press releases issued by the Basel Committee and IOSCO.
FSB RCG for the Americas holds meeting. The FSB published a summary of the discussions of its Regional Consultative Group (RCG) for the Americas at its recent meeting. Among other topics, the RCG discussed regional financial market developments and vulnerabilities, the reduction in correspondent banking relationships, and misconduct risks in the financial sector. (12/13/2017) FSB press release.
Seventh meeting of the FSB RCG for the Commonwealth of Independent States. The FSB summarized the discussions of its RCG for the Commonwealth of Independent States at its seventh annual meeting. Among other matters, the RCG considered FinTech issues, the decline in correspondent banking relationships, and the benefits of financial ombudsmen. (12/12/2017) FSB press release.
International Organization of Securities Commissions IOSCO discusses considerations for selection appropriate benchmarks. IOSCO released a statement directed at users of benchmarks that sets out the matters they should consider when selecting an appropriate benchmark and in contingency planning, especially for scenarios in which a benchmark is no longer available. (1/5/2018) IOSCO press release.
Monitoring Group roundtables on reforms to audit standard-setting process. IOSCO announced that the Monitoring Group will hold a series of roundtable discussions in January 2018 with stakeholders on proposed reforms to the global audit standard-setting process. The roundtables will take place in Johannesburg, London, Washington D.C., and Singapore. (12/15/2017) IOSCO press release.
International Swaps and Derivatives Association
OTC Derivatives Compliance Calendar. The International Swaps and Derivatives Association published updates to its OTC Derivatives Compliance Calendar. (1/2/2018)