FSB launches shadow banking risk review
06 July 2015 Basel
Image: Shutterstock
The Financial Stability Board has launched a peer review on the implementation of its policy framework for the financial risks posed by non-bank financial entities.
The framework applies to ‘other shadow banking entities’ that are not money market funds. An evaluation will look at the progress made by FSB jurisdictions when it comes to implementing the main principles outlined in the framework.
In particular, it will address the assessment of shadow banking entities based on economic functions, the adoption of policy tools for mitigating any risks identified, and levels of participation in the FSB information-sharing process.
A questionnaire has been distributed to national authorities of FSB jurisdictions, however the review will also welcome feedback from financial institutions, industry and consumer associations, and other stakeholders.
This feedback could include: comments on the arrangement for defining and updating ‘regulatory perimeters’ to capture new forms of shadow banking that ensure financial stability; types of information necessary for assessing the risks of shadow banking for those large firms that have the potential to affect the wider financial system; ways to increase public disclosure of risks; and tools for mitigating any identified risks.
The deadline for submitting feedback is 24 June and, although individual submissions will remain private, a peer review is expected in Q1 2016.
The framework applies to ‘other shadow banking entities’ that are not money market funds. An evaluation will look at the progress made by FSB jurisdictions when it comes to implementing the main principles outlined in the framework.
In particular, it will address the assessment of shadow banking entities based on economic functions, the adoption of policy tools for mitigating any risks identified, and levels of participation in the FSB information-sharing process.
A questionnaire has been distributed to national authorities of FSB jurisdictions, however the review will also welcome feedback from financial institutions, industry and consumer associations, and other stakeholders.
This feedback could include: comments on the arrangement for defining and updating ‘regulatory perimeters’ to capture new forms of shadow banking that ensure financial stability; types of information necessary for assessing the risks of shadow banking for those large firms that have the potential to affect the wider financial system; ways to increase public disclosure of risks; and tools for mitigating any identified risks.
The deadline for submitting feedback is 24 June and, although individual submissions will remain private, a peer review is expected in Q1 2016.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
