One aspect of regulatory fragmentation is the multitude of national reporting requirements. But given that many of these requirements are based on globally agreed regulatory frameworks, there is some optimism that greater data harmonisation can be achieved. By Justin Pugsley.
Global
SA-CCR: The importance of integration
The steady rollout worldwide of the Standardised Approach for Measuring Counterparty Credit Risk, a revised rule under Basel III applied to calculate the exposure at default of derivatives, means banks need to consider how to integrate the standard into their overall regulatory approach. By Kobe Demuynck, regulatory reporting consultant for Wolters Kluwer’s Finance, Risk & Reporting business
Non-bank financial entities continue to expand, but at slower pace - FSB
Non-bank financial entities, sometimes called shadow banks, are continuing to grow says the FSB, albeit at a slower pace. Nonetheless, it has identified some areas where systemic risks could be lurking
EY says banks and regulators need to quickly adapt to emerging risks
With much of the global standard setting complete, EY warns in its 2019 regulatory outlook that the industry faces risks around market fragmentation and from greater digitisation
IIF urges global standard setters to urgently address market fragmentation
Diverging interpretations of global standards and national regulatory initiatives are damaging global markets says the IIF, which is calling on the G20 and the FSB to take urgent action to reverse the slide towards greater global fragmentation
Iosco consults on improving sustainable finance in emerging markets
Iosco is consulting on a series of recommendation to improve sustainable finance and the operation of capital markets in developing countries
Realisation sinking in that Libor’s days are numbered
A visible shift towards alternative risk free rates to replace scandal tarnished Ibors is happening, but regulators remain concerned over whether the pace is fast enough
Basel shifts on FRTB, but banks still see compliance as challenging
FRTB has been finalised and though the revised framework contains some changes asked for by the industry, there were few surprises and banks did not get everything they wanted.
Bigtech and fintech define their boundaries in banking markets
Bigtech and fintech firms are not just posing a competitive threat to traditional banks, but are also a potential headache for regulators who want to curb any potential systemic risks without stifling innovation and competition.
The lessons of Lehman live on in data lineage
One of the great lessons of the collapse of Lehman Brothers was the lack of data surrounding its operations and relationships with counter-parties. Since then there has been an intense focus on data quality with considerable progress made. By Charlie Browne, head of market data and risk at GoldenSource.
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