Following a near six hour session at the US House of Representatives involving the CEOs of seven US G-SIBs it was revealed that cyber is the single greatest risk to the financial system while considerable concern was also expressed about shadow banking
Regions
Shift to alternative rates slowed by accounting issues
The regulatory driven shift away from Ibors to alternative near risk free rates is happening surprisingly quickly, but could be even faster if various accounting and operational issues are addressed more swiftly
European parliament approves EU banking package
The EU has passed its banking package designed to transpose revisions to the Basel framework into EU law, but not everyone is happy with the result.
FSB voices concern over CLOs with many new reports scheduled
Despite there being few signs of imminent threats to financial stability, the Financial Stability Board (FSB) restated its concerns over the growth of collateralised loan obligations (CLOs) at its plenary meeting in New York on April 26 and promises a raft of reports on various aspects of the financial system.
FCA signals return to principles-based approach post Brexit
Following the possible departure of the UK from the EU, the Financial Conduct Authority (FCA) would favour a regulatory approach that focuses on the same outcomes, but with a lower regulatory burden on firms.
EU recognises most of Japan’s uncleared OTC derivatives regime
Japan’s rules governing uncleared over-the-counter (OTC) derivatives have been recognised as equivalent to the European market infrastructure regulation (Emir) by the European Commission, though not its risk mitigation processes.
European Parliament wants Italy’s bank shareholder rescue scheme blocked
European Parliamentarians are urging the European Commission to block a plan by Italy’s government to automatically compensate retail shareholders and bondholders in banks that fail as they see it going against EU bank bail-out rules.
ECB consults on supervisory fees
The European Central Bank (ECB) is seeking feedback on proposed changes to its supervisory fees and levies on covered banks and the timing of their collection.
Hong Kong’s regulators consult on aligning OTC derivatives regime with global standards
Hong Kong’s regulators are consulting on a series of measures so that the city’s over-the-counter (OTC) derivatives regime closely aligns with international standards.
ESAs gain more powers, but European Commission disappointed
The three European Supervisory Authorities have gained more power, but not as much as the European Commission asked for, while reactions from industry are mixed.
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