FSB requests papers on addressing shadow bank systemic risks

Parties interested in non bank financial institutions (NBFIs) are being asked by the Financial Stability Board (FSB) to submit papers on how to address the systemic risks they pose. 

Fed’s Brainard becomes chair of FSB vulnerabilities committee

Lael Brainard, the nominee vice chair of the US Federal Reserve Board, has been appointed as chair of the Financial Stability Board’s (FSB) Standing Committee on Assessment of Vulnerabilities (SCAV).

RTGS needs to adapt to growth in fast payment systems

The rapid rollout of fast payment systems (FPS) holds implications for real-time gross settlement (RTGS) systems, such as the modification of access criteria, according to a report from a committee hosted by the Bank for International Settlements.

IOSCO finds investment funds are not currently endangering financial stability

Open-ended funds are not meaningfully leveraged while hedge funds are increasing their borrowings, said the International Organization of Securities Commissions (IOSCO) on January 4, 2022, in its expanded annual Investment Funds Statistics Report.

Matthias Graulich

Industry concerned about CPMI-IOSCO CCP models and protocols

Global standard setters CPMI and IOSCO want clearing houses to beef up client clearing services and porting practices, but market experts warn of impossible hurdles. 


BIS calls for regulatory response to evolving shadow banking risks

Increasing hidden leverage and liquidity mismatches are crying out for a macroprudential regulatory response, warned the Bank for International Settlements (BIS) in its December 2021 quarterly review.

Thierry Philipponnat

IOSCO seeks to drive ESG ratings consistency

The plethora of opaque and often confusing ESG ratings methodologies could endanger the transition to a sustainable economy prompting IOSCO to wade in with suggestions on how to improve consistency. 

CPMI and IOSCO consult on CCP access and porting practices

Global standard setters are consulting on ways for client positions at a defaulting central counterparty clearing houses (CCPs) to be ‘ported’ to a viable clearer to avoid quickly liquidating positions, which could disrupt markets. 

Johnny Shearman

Legal risks still remain despite extensive preparations for Libor’s cessation

The clock is ticking for Libor, with all but dollar Libor tenors ceasing on December 31, 2021. Despite efforts to ensure a smooth transition, concerns remain over legacy contracts and how jurisdictional divergence will evolve. 

Basel Committee consults on climate change risk management practices

Global banks and supervisors are being asked about the establishment of a principles based approach to improving both banks' risk management and supervisors' practices related to climate-related financial risks by the Basel Committee on Banking Supervision.